NYAG Investigates DCG Chief Barry Silbert Over Genesis Ties

Patchen worked as an executive at Genesis for just three months before resigning in October 2022. When asked about the testimony, Patchen’s lawyer, Doug Jensen, chose not to comment on Thursday.

There is a state investigation happening, and this information hasn’t been reported before. The investigation is led by James, who wants to be seen as a major enforcer of crypto-related matters in the US. She has been concerned about the crypto industry for a few years and proposed a new state law in May to make rules for cryptocurrency companies stricter. Lawmakers could consider this proposal at any time.

DCG Chief’s Relation With Genesis

DCG chief Gary Silbert mentioned that the loans between DCG and Genesis were standard business transactions. They were made in a fair and independent manner, with interest rates based on the current market rates.

DCG is a large conglomerate that manages various crypto-related entities. It has supported over 150 blockchain businesses worldwide, playing a significant role in legitimizing digital currencies as a reputable asset class.

Genesis owes more than $3.9 billion to creditors, however, Genesis claims that the amount is low at $2 billion. Of this, Genesis owes a major part i.e. $1 billion to crypto exchange Gemini alone. After failing through all negotiations, Gemini filed a lawsuit against DCG and Gary Silbert over charges of fraud. In a positive development, Genesis and FTX have come to a settlement to settle disputes.

Thus, it will be interesting to see how Genesis will overcome or clear the major claims from the creditors.