Reportedly Digital Currency Group (DCG) firm is now under investigation by New York’s top law enforcement agency.
Digital Currency Group (DCG) is a popular firm in the crypto sector. CoinDesk, Foundry, Genesis, Grayscale Investments, and Luno are its subsidiaries. Since Dec 2022, DCG is struggling financially but trying every way to overcome this situation without bankruptcy-like options.
Many crypto Twitter users claimed that DCG is now under investigation by New York’s top financial-related enforcement agency.
Reportedly New York General Attorney Letitia James initiated this Investigation but so far no official information came from James on this matter.
In recent months, this platform faced huge hurdles, and also in June of this year the firm said that it will wind down its crypto lending business because of the highly pressured regulatory situation in the US.
In early of this year, to fight against its bad financial position and repay debt, the DCG firm decided to sell its crypto news media house Coindesk but later the discussion disappeared related to this matter.
Crypto & Regulatory Hurdles in America
In 2022 & Q1 2023, a huge number of crypto companies collapsed badly and that dragged the attention of the US regulators to take strict action against the crypto companies.
This year the US regulators took several enforcement actions against the crypto companies on behalf of the traditional financial rules & regulations. Which further created a very tough situation for the crypto companies to operate services smoothly.
In June of this year, the United States Securities Exchange Commission (SEC) sued Coinbase & BinanceUS. Now both of these two companies are struggling in court against the SEC’s charges.