FBI Interviewed Cameron Winklevoss In DCG Fraud Case
FBI agents and US Securities and Exchange Commission officials questioned Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, in the DCG fraud case. Winklevoss had previously accused Barry Silbert, CEO of Digital Currency Group (DCG), of fraud.
The interview is part of a larger FBI review of the financial operations of DCG and its bankrupt Genesis subsidiary. However, the FBI has filed no formal charges.
Gemini worked closely with Genesis and was its major creditor. The two companies created a joint product for their customers. When Genesis collapsed, Gemini was hit hard, and its management sued DCG and Barry Silbert. Silbert himself continues to deny guilt of fraud, claiming that his company has always operated legitimately and is willing to co-operate with regulators.
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Earlier this year, Cameron Winklevoss filed a lawsuit against CEO Barry Silbert, accusing him of orchestrating a massive fraud scheme.
The Winklevoss twins have publicly accused DCG, Genesis and Silbert of being misled. In addition, the twins believe that DCG's CEO deliberately hid information about Genesis' potential problems. The Winklevosses believe that Silbert and his companies falsified the June 2022 financial report to confuse Gemini and other creditors even further.
The situation got worse due to the SEC's scrutiny, which accused Genesis and Gemini that their joint Earn program violated the securities trading law. And the New York Department of Financial Services has launched a separate investigation into Gemini.