New York Attorney General Letitia James has allegedly launched an investigation into Digital Currency Group (DCG), the parent company of troubled crypto firm Genesis.
Bloomberg is facing another investigation, this time by New York state's top law enforcement agency, into its financial dealings with its subsidiary, Genesis Global Capital, citing two people familiar with the matter.
People who said in recent months that the office of New York Attorney General Letitia James had requested information from former executives of cryptocurrency lender Genesis, which filed for bankruptcy in January, asked not to be named as the investigation was not made public.
DCG is one of the largest and most influential companies in the crypto industry, with investments in over 200 crypto-related businesses, including Coinbase, Grayscale, BitGo, and Chainalysis. Genesis, on the other hand, is its trade and lending arm, which recently announced a restructuring plan amid further layoffs and financial difficulties.
One of the sources in question said Michael Patchen, Genesis' former head of risk, was recently questioned.
Patchen was director of Genesis for only three months before resigning in October 2022. His lawyer, Doug Jensen, declined to comment when asked about the statement on Thursday.
Federal prosecutors and the Securities and Exchange Commission in Brooklyn are currently conducting investigations at Genesis and its parent company, DCG, and are requesting interviews with potential witnesses.
A spokesperson for DCG said the company assists regulators and investigative bodies on demand.
“DCG has always conducted its business legally and to the highest ethical standards,” the spokesperson said.
*Not investment advice.
