A bitter feud between crypto tycoons has piqued the interest of U.S. investigators who were already looking into the finances of one of the industry’s best-known empires, Bloomberg News reported. For months, Digital Currency Group Inc. and its chief executive officer Barry Silbert have been facing fraud accusations from Cameron Winklevoss, the co-founder of crypto trading platform Gemini Trust Co. Despite them denying the claims, federal officials are digging in as part of an ongoing review of the internal financial dealings of DCG and its Genesis Global Capital subsidiary. Prosecutors in Brooklyn, Federal Bureau of Investigation agents, and U.S. Securities and Exchange Commission staff sat in on an interview in recent months with Winklevoss to discuss his allegations, according to people familiar with the matter. The U.S. Attorney’s Office for the Eastern District of New York inquired specifically about Silbert’s conduct, said the people, who asked not to be identified discussing the confidential probe. Silbert, who hasn’t been accused of any wrongdoing, referred an inquiry to a DCG spokeswoman. The representative for the company, which authorities also haven’t accused of misconduct, declined to comment. In the past, the company has said it operates in a lawful and ethical manner. Investigations by U.S. attorneys, the FBI or the SEC don’t always lead to charges or enforcement actions.
