The collapse of FTX in late 2022 was the final straw for Genesis, which earlier that year reportedly suffered losses of several hundred million dollars due to its exposure to failed crypto hedge fund Three Arrows Capital.
Digital Currency Group, Grayscale's parent company, has come under increasing pressure to address a discount that had widened to nearly 50% towards the close of 2022.
The inquiries, which appear to be in an early stage, are focused on financial transfers between DCG and its Genesis unit, according to the Bloomberg report.