FBI Becomes Involved In Winklevoss-Digital Currency Group Dispute

September 8, 2023 11:01 am Comments

Barry Silbert and the Digital Currency Group (DCG) are now in dire straits.

According to recent reports, the Federal Bureau of Investigation (FBI) and prosecutors from the Southern District of New York met with Cameron Winklevoss to discuss his claims of fraud against Silbert and DCG.

ProCoin News previously reported that a tentative deal between DCG and its creditors broke down late last month.

Bloomberg reporter Ally Versprille had the scoop: “Prosecutors in Brooklyn, SEC staff, and FBI agents met in recent months with Gemini’s Cameron Winklevoss to discuss fraud allegations he’s made against DCG and its CEO Barry Silbert.”

Wendy, the host of The O Show podcast, had this to say: “Commingling funds and fraud has been a popular business practice throughout this bear market (FBI might now be investigating DCG.)”

The Block detailed the allegations:

Winklevoss has repeatedly taken to social media to lambaste Silbert, including demanding DCG pay his company $1.5 billion or face a lawsuit. Gemini eventually sued DCG after not receiving the requested payment.

WhaleWire reports: “FBI has officially launched an investigation into Grayscale. Earlier this year, Cameron Winklevoss filed a lawsuit against CEO Barry Silbert, accusing him of orchestrating a massive fraud scheme.”

Bitcoin Magazine CEO David Bailey explained:

Holy shit, Barry Silbert should go to jail. 1. He borrows boatloads of cash from Genesis to prop up the GBTC market ($500m!). $300m of it happened May 9th/10th. Wonder what he knew. 2. He then borrows 18,000+ btc June 18th at unbelievable terms. No collateral, no maturity.

This 18,000 btc borrow is AFTER he knows 3AC situation. Roughly the same time he demands repayment from Alameda. Also the same time he removes Genesis as the AP for Grayscale…3. He then lets Genesis know, that DCG is going to repay the bitcoin note with GBTC on Nov 10th.” 

Reuters added:

DCG has denied any wrongdoing. A spokesperson for DCG declined to comment on the inquiry but said that the firm “always conducted its business lawfully and with the highest ethical standards” and that it assists regulators when asked.

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