DCG And Genesis Knew That Alameda Would Be Insolvent In Late May 2022
- According to sources cited by cryptocurrency Twitter commenter Andrew, DCG and Genesis were aware that FTX and Alameda became insolvent in late May 2022.
- As a result, the company founder Barry Silbert and the firm actively exerted pressure on Alameda to settle a $2.5 billion loan owed to Genesis.
- Additionally, Andrew added that his sources have been verified and that DCG does indeed owe Genesis a debt of more than $1.1 billion. Before Silbert made this information public, the company, however, did not corroborate it.
Another truth has been exposed to the public, and this time it seems that Digital Currency Group (DCG) is not only in legal trouble.
Crypto Twitter commentator Andrew quoted sources as saying DCG and Genesis knew that FTX and Alameda would be insolvent in late May 2022, and DCG founder Barry Silbert and the company began to actively put pressure on Alameda, demanding repayment of a $2.5 billion loan owed to Genesis.
Andrew also confirmed his sources were verified, he also said that DCG’s debt to Genesis does exist, amounting to over $1.1 billion. However, the company did not confirm this before it was revealed by Silbert.
Grayscale is among the parties from which Andrew is currently awaiting responses. Many think that something will need to happen with Grayscale to make up for the losses and to fill the huge hole that Genesis caused. Grayscale, which runs the Grayscale Bitcoin Trust (GBTC), the largest institutional investment vehicle for all cryptocurrencies, is DCG’s cash cow.
Previously, officials with the Eastern District of New York (EDNY) of the US Department of Justice and the US Securities and Exchange Commission were examining money transfers between DCG and the group’s Genesis subsidiary.
The report said prosecutors at the DOJ’s Eastern District office in New York had requested interviews and documents from DCG and Genesis. At the same time, the SEC is at an early stage of the investigation check. The report, citing people familiar with the matter, said that both companies were “allegedly engaged in misconduct.”
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