Following accusations from Gemini co-founder Cameron Winklevoss in an open letter to Digital Currency Group CEO Barry Silbert, a report citing “people familiar with the matter” states that federal prosecutors from New York are scrutinizing transfers between Digital Currency Group and its subsidiary, Genesis Global Capital.
According to a recent letter from Cameron Winklevoss, co-founder of the crypto exchange Gemini, Digital Currency Group (DCG) has until Jan. 8, 2023, to resolve liquidity issues between Gemini and the lending unit of Genesis Global Capital. It has been reported that Genesis owes $900 million to Gemini Earn customers and both companies’ lending arms have halted withdrawals since mid-Nov. 2022.
Reports have disclosed that Genesis was impacted severely by the collapse of FTX and Alameda Research and Gemini has recently been informed that it may face a potential class-action lawsuit over the matter. Bloomberg states that federal investigators are getting involved and are reportedly looking into transactions between Digital Currency Group (DCG) and Genesis. “People familiar with the matter,” who requested anonymity, told the publication that prosecutors in the Eastern District of New York and the U.S. Securities and Exchange Commission (SEC) are investigating the issue.
Bloomberg requested a comment from Silbert and a Digital Currency Group (DCG) spokesperson responded. “DCG has a strong culture of integrity and has always conducted its business lawfully. We have no knowledge of or reason to believe that there is any Eastern District of New York investigation into DCG,” the company spokesperson said in a statement. The news outlet also reported that “the SEC and US Attorney’s Office for the Eastern District of New York declined to comment.”
The Bloomberg editorial follows a series of reports about alleged probes by U.S. authorities into crypto firms that have either resulted in enforcement, never materialized, or have yet to come to fruition. In the past 12 months, reports citing “people familiar with the matter” have stated that U.S. investigators are probing crypto reserve auditors, U.S. taxpayers, Three Arrows Capital, Twitter, Coinbase, Binance, and Uniswap, among others.
What do you think about the report that alleges Digital Currency Group (DCG) and Genesis are being investigated by U.S. authorities? Share your thoughts on this topic in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Ripple CEO: SEC Lawsuit Over XRP 'Has Gone Exceedingly Well'
The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.
Following accusations from Gemini co-founder Cameron Winklevoss in an open letter to Digital Currency Group CEO Barry Silbert, a report citing “people familiar with the matter” states that federal prosecutors from New York are scrutinizing transfers between Digital Currency Group and its subsidiary, Genesis Global Capital.
According to a recent letter from Cameron Winklevoss, co-founder of the crypto exchange Gemini, Digital Currency Group (DCG) has until Jan. 8, 2023, to resolve liquidity issues between Gemini and the lending unit of Genesis Global Capital. It has been reported that Genesis owes $900 million to Gemini Earn customers and both companies’ lending arms have halted withdrawals since mid-Nov. 2022.
Reports have disclosed that Genesis was impacted severely by the collapse of FTX and Alameda Research and Gemini has recently been informed that it may face a potential class-action lawsuit over the matter. Bloomberg states that federal investigators are getting involved and are reportedly looking into transactions between Digital Currency Group (DCG) and Genesis. “People familiar with the matter,” who requested anonymity, told the publication that prosecutors in the Eastern District of New York and the U.S. Securities and Exchange Commission (SEC) are investigating the issue.
Bloomberg requested a comment from Silbert and a Digital Currency Group (DCG) spokesperson responded. “DCG has a strong culture of integrity and has always conducted its business lawfully. We have no knowledge of or reason to believe that there is any Eastern District of New York investigation into DCG,” the company spokesperson said in a statement. The news outlet also reported that “the SEC and US Attorney’s Office for the Eastern District of New York declined to comment.”
The Bloomberg editorial follows a series of reports about alleged probes by U.S. authorities into crypto firms that have either resulted in enforcement, never materialized, or have yet to come to fruition. In the past 12 months, reports citing “people familiar with the matter” have stated that U.S. investigators are probing crypto reserve auditors, U.S. taxpayers, Three Arrows Capital, Twitter, Coinbase, Binance, and Uniswap, among others.
What do you think about the report that alleges Digital Currency Group (DCG) and Genesis are being investigated by U.S. authorities? Share your thoughts on this topic in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Today's Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits
As the crypto economy hovers just under $2 trillion in value, application-specific integrated circuit (ASIC) mining devices are making decent profits. While ASIC miners can still mine ethereum, a 1.5 gigahash (GH/s) Ethash mining device can rake in $51.58 per ... read more.
During the first week of the new year, Bitcoin’s hashrate reached an all-time high (ATH) on Jan. 6, 2023, at block height 770,709. The network recorded a milestone of around 361.20 exahash per second (EH/s) on Friday, jumping more than 4% higher than the previous record of 347.16 EH/s recorded on Nov. 12, 2022.
Bitcoin’s computational power is running hot during the first week of the new year as it broke its first record in 2023. According to statistics on Jan. 7, Bitcoin’s hashrate is currently coasting along at 290 EH/s after reaching its all-time high (ATH) the day prior. The ATH occurred on Jan. 6 at 3:42 p.m. ET at block height 770,709, when the network’s total hashpower reached 361.20 EH/s. This record equates to 0.3611999 zettahash per second (ZH/s) or roughly 361.2 quintillion hashes per second.
The Jan. 6 record was more than 4% higher than the Nov. 12, 2022 record of around 347.16 EH/s, printed at block height 762,845. Because the hashrate has been so high, block generation times have been much faster than the 10-minute average. Statistics show that current block intervals (the time between mined blocks) have been between 8:51 and 7:31 minutes. Data also shows that the cost of BTC production has dropped. Metrics from macromicro.me indicate that the cost of bitcoin production is $16,568 per unit, while the spot price is $16,920 per unit.
Statistics from theminermag.com show that the cost of bitcoin production might even be much lower, as the web portal shows the average cost at around $13.6K per unit. The faster block intervals will likely mean that the network’s difficulty will rise on or around Jan. 16, 2023, after a 3.59% decrease on the second day of the year. Current estimates for the difficulty change in more than eight days range from 7.04% to a record-setting 13.2% increase. On Oct. 10, 2022, there was a 13.55% increase, which was the largest upswing of the year.
On Jan. 7, 2023, three-day statistics show that Foundry USA is the top mining pool with 29.34% of the world’s total hashrate, or roughly 78.85 EH/s of hashpower. Foundry is followed by Antpool (20.04%), F2pool (16.74%), Viabtc (9.71%), and Binance Pool (7.85%), respectively. The processing power of the network reaching record highs suggests that Bitcoin’s blockchain is becoming more powerful, which is seen as a positive sign for the overall health of the Bitcoin network. However, as mentioned above, it can also have an impact on the difficulty of mining new blocks after the difficulty changes on Jan. 16 in eight days.
What do you think about Bitcoin’s hashrate surging to new heights and the possibility of a record-setting difficulty change in eight days? Let us know your thoughts about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)'s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.
Source From : News