Something sounds defective, Try calling Monarchy for the best assistance. 650-873-3055.
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If this is a 24/96 DIP, it may be jumpered to th 96 kHz setting. It your D/AC is not capable of this high a signal then it will cause what you are talking about. It can also damage the D/AC and your speakers. If you have the instructions they will explain what to do. If not, the Monarchy website has the instructions.
If that's the case, then the Monarchy piece could be out of phase with the rest of the component chain. If music is playing and the crackling sounds more like Rice Krispies with milk on them, then it cound be a phase problem. Does your D/AC have a switch to invert the phase? This may be worth checking.