Crypto conglomerate Digital Currency Group (DCG) is facing a major probe by New York Attorney General Letitia James’s office over the company’s financial dealings with its subsidiary Genesis Global Capital.

Sources familiar with the matter said that New York’s top law enforcement officer requested information from former executives of Genesis. Crypto lender Genesis filed for bankruptcy earlier this year after facing a major liquidity crisis following the collapse of crypto exchange fTX.

One source familiar with the matter told Bloomberg that former Genesis chief risk officer, Michael Patchen, was recently questioned by NYAG’s office. Federal prosecutors in Brooklyn and the Securities and Exchange Commission (SEC) are currently investigating Genesis and its parent company, DCG.

They are seeking interviews with potential witnesses as part of their inquiries. Genesis faced significant losses last year during the crypto market downturn, particularly after the collapse of digital-assets hedge fund Three Arrows Capital and crypto exchange FTX.

In response to the investigations, a spokesperson for DCG stated that the company is cooperating with regulators and investigative agencies as requested. The spokesperson said: “DCG has always conducted its business lawfully and with the highest ethical standards”.