The New York State Attorney General is examining financial dealings between DCG and its subsidiary Genesis. DCG has disclosed that it received nearly $575 million in loans from Genesis.
Attention includes a letter from DCG founder and chief executive Barry Silbert to shareholders referring to a $1.1 billion promissory note tied to the collapse of Three Arrows Capital. Genesis went bankrupt in January with estimated debt and assets of between $1 billion and $10 billion.
Genesis is the largest unsecured creditor of FTX and its affiliates, with $226 million owed. The two families recently reached a settlement.
DCG has invested in about 200 crypto-related companies, such as Grayscale, Genesis and CoinDesk, and holds stakes in Luno exchange and consulting firm Foundry.
