2023-08-06 10:32:10
It could be said that the bomb went off like a bomb when the New York State Attorney, Letitia James, launched an investigation against the Digital Currency Group (DCG). Among other things, DCG is the owner of Genesis, which has been struggling with financial problems for quite some time. Documents have appeared on X’s platform, the former Twitter, about the investigation into DCG’s business practices and compliance with state regulations. This is not the first time, anyway. At this time, neither party has confirmed the fact. The investigation against DCG could be a serious blow to the crypto sector Genesis has been hit hard recently even without the investigation against DCG. Back in June, they announced that they were closing down their crypto lending business due to regulatory issues. All this after the American Securities and Exchange Commission (SEC) started asking questions about the lending practices of the platform. The name Digital Currency Group may not be in the public mind that much, but it is one of the largest crypto investors. Back in May of this year, they raised $700 million in a venture capital round, but at the same time, they were forced to record serious losses with several of their crypto investments. If the state attorney is really going to investigate DCG, it could be a big blow to the entire crypto sector. In the worst-case scenario, a serious fine is expected for DCG, but the crypto sector will surely have to face the fact that the regulatory pressure will increase even more. Already, state and federal regulations require a lot of attention for a crypto company, and may deter some companies from entering the market.
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