According to Bloomberg, Digital Currency Group (DCG)’s internal fund transfers and transactions with its subsidiary Genesis have attracted the attention of the U.S. Department of Justice, which has requested interviews with DCG personnel and the provision of relevant documents to assist in the investigation. , DCG founder and CEO Barry Silbert has also been implicated, and the U.S. Department of Justice is investigating the case.

Just entering 2023, DCG has become the target of public criticism one after another. First, the Winklevoss brothers publicly accused DCG of maliciously defaulting on US$900 million in assets owed to Gemini customers. Subsequently, Zhu Su, the founder of Three Arrows Capital, joined the fray again, revealing that DCG suffered heavy losses due to the bankruptcy of Three Arrows. , the shady story of "left hand and right hand" to fix loopholes, and Gemini users filed a class action lawsuit against DCG. A series of scandals broke out one after another, which also caused the DCG Group, which once "covered the sky with one hand" in the currency circle, to be mired in quagmire and teetering on the verge of collapse.

Then on January 6, it was reported that DCG announced the closure of its wealth management subsidiary HQ Digital, while another subsidiary Genesis, which is on the verge of bankruptcy, is also undergoing a second round of layoffs and is considering filing for bankruptcy.

This article The U.S. Department of Justice has launched an investigation into whether DCG and its subsidiaries engaged in illegal insider trading first appeared on Blockchain.