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NY Attorney General Probes Digital Currency Group’s Dealings with Genesis Global Capital

Bloomberg’s report on Aug. 4 reveals that the New York Attorney General is currently investigating Digital Currency Group (DCG), a venture capital company focusing on the digital currency market. Specifically, the NY Attorney General is probing DCG’s dealings with its subsidiary, Genesis Global Capital, and its former chief risk officer, Michael Patchen, who left the firm in October 2022.

While the NY Attorney General’s office, led by Attorney General Letitia James, has not officially announced the investigation, Bloomberg cites two individuals familiar with the matter as sources. DCG has not commented on the existence of the probe but mentioned cooperating with regulators and investigators as requested.

It’s important to note that the investigation does not guarantee an official complaint against DCG or its subsidiaries. The NY Attorney General has previously taken action against several crypto companies, but whether the current investigation is related to previous probes concerning internal transfers between DCG and Genesis remains unclear.

In January, Bloomberg reported that DCG faced other investigations from the Eastern District of New York and the U.S. Securities and Exchange Commission (SEC), involving internal transactions between DCG and Genesis. Additionally, the SEC charged Genesis and its partner Gemini for offering a now-defunct interest-bearing service to investors, leading to a separate lawsuit against DCG related to the service’s failure from Gemini. Genesis’ lending arm is currently undergoing bankruptcy proceedings.

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