Cameron Winklevoss, co-founder of crypto agency Gemini Trust Co., is being investigated by U.S. authorities over fraud claims he has made against Digital Currency Group (DCG) and its founder Barry Silbert. According to a source familiar with the inquiry, Winklevoss accused DCG and Silbert of misrepresenting the financial health of DCG’s lending arm Genesis, which filed for bankruptcy in January. Gemini was the largest creditor of the bankrupt agency and is now suing DCG and Silbert.
DCG has denied any wrongdoing and a spokesperson for the company stated that they “always conducted its business lawfully and with the highest ethical standards”, and assist regulators when requested.
The investigation involves federal prosecutors in New York, FBI and the Securities and Exchange Commission. Recent months saw Winklevoss interviewed by the authorities regarding his claims. Bloomberg was the first to report on the federal prosecutors’ and SEC’s investigation into DCG’s financial dealings.
A spokesperson for the federal prosecutors declined to comment. The SEC, FBI and Gemini did not immediately respond to requests for comment. No one has been accused of any misconduct and investigations do not always result in charges.
Reported by Chris Prentice in New York and Jaiveer Singh Shekhawat in Bengaluru; Edited by Devika Syamnath and Cynthia Osterman, our standards: The Thomson Reuters Trust Principles. Acquire Licensing Rights, opens new tab.
