Digital Currency Group (DCG), the parent company of wholly owned subsidiary cryptocurrency brokerage firm Genesis, is reportedly looking to divest some of its venture capital portfolios to raise funds to cover part of the crisis. debt of the latter.
Genesis halted withdrawals in November, becoming the latest cryptocurrency lender to face a financial crisis.
According to the Financial Times on Tuesday (January 12, 2023), anonymous sources revealed that Genesis is currently over $3 billion in debt. The crypto lender previously hired Moelis, a New York-based global investment bank, to explore options, but there appears to be no interest in injecting capital into Genesis. Meanwhile, parent company DCG is trying to raise funds to offset the debt, according to people familiar with the matter. The conglomerate is looking to sell some of its venture capital portfolios. According to sources, these include 200 crypto exchanges, custodians, and banks, valued at $500 million. Some of DCG’s top portfolio companies include the bankrupt Coinbase, Blockchain.com, Kraken, and FTX. As CryptoPotato previously reported, Genesis owes Gemini Earn users around $900 million, while Dutch crypto exchange Bitvavo is owed €280 million. Bitvavo has rejected DCG’s offer to pay 70% of its debt, saying the conglomerate has the means to make the full payment. Genesis, which is battling a financial crisis, halted withdrawals in November 2022 after being hit by the FTX crash. Gemini co-founder Cameron Winklevoss recently called on the DCG Board to remove its CEO, Barry Silbert, saying that Silbert is unable to find a solution that is reasonable to creditors.
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This post DCG looking to sell some assets as Genesis owes creditors more than $3bn: report
was published first on https://cryptopotato.com/dcg-looking-to-sell-off-some-assets-as-genesis-owes-creditors-over-3b-report/