Digital Brands Group, Inc. (DBGI) announced the cancellation of 7.1 million pre-funded warrants. The cancellation is a protective measure pending a legal investigation into suspected corporate misconduct. Allegations include collusion, acting in concert, and multiple violations of the 4.99% beneficial ownership cap. The company is investigating the use of foreign silent partners as nominees to circumvent ownership thresholds. The investigation also covers discrepancies in transfer agent records and share counts.