The digital currency group is under investigation by US authorities

Cryptocurrency conglomerate Digital Currency Group, or DCG, is under investigation by the United States Department of Justice’s New York Eastern District and the Securities and Exchange Commission (SEC). Agreement With a Bloomberg report.

Authorities are investigating internal transactions between DCG and its crypto lending subsidiary, Genesis Global Capital, according to the report, which cited people familiar with the matter. Prosecutors have already requested interviews and documents from both companies, while the SEC is conducting a similar preliminary investigation.

To date, no charges have been filed against the DCG, nor has any US agency provided any information about the case. A spokesperson for DCG said the agency was not aware of the investigation:

“DCG has a strong culture of integrity and has always conducted its business legally. We have no knowledge or reason to believe that there is any investigation pending against the DCG of the Eastern District of New York.

Genesis was one of the companies hit by the wave of contagion following the FTX collapse in November. According to the company’s disclosure on November 10, $175 million has been blocked in the FTX trading account.

Genesis The looting stopped on November 16 Hired investment bank Moelis & Company to help with liquidity issues and restructuring.

Related: Genesis tells clients they need more time on money issues after Gemini requests action

Have Genesis $900 million for cryptocurrency exchange Gemini . They jointly operated a product called Gemini Earn, which allows crypto investors to earn 8% interest on their crypto loans. Gemini alleges that TCG Genesis’ failure to pay resulted in the failure to pay Gemini customers.

Other DCG affiliates include Greyscale Investments, media outlet CoinDesk, cryptocurrency exchange Luno and Bitcoin miner Foundry. Cointelegraph reported Most greyscale trusts trade at a discount Ethereum Classic Trust is trading at a huge discount of 77% on January 4, Litecoin Trust is down 65% and Bitcoin Cash Trust is down 57%.

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