Crypto broker Genesis Global Trading is said to have more than $3 billion in debt to creditors. according to In a January 12 report from the Financial Times. Its parent company, Digital Currency Group (DCG), which also owns Grayscale Investments and its suite of digital asset trusts, is looking to sell some of its venture capital holdings to offset shortfalls. .
According to people familiar with the matter, DCG’s venture arm has more than 200 cryptocurrency-related projects, “exchanges, banks, custodians, etc. in at least 35 countries,” with a total valuation of around 500 million. go up to the dollar. Genesis reportedly hired investment banker Moeris to explore strategic alternatives, but there was little interest in a capital injection, according to people familiar with the matter. January 5th, Genesis dismissed We cut 30% of our staff as a cost-cutting measure. This is his second in six months.
January 12, DCG Chief Barry Silbert letter to shareholders “The bad guys and the implosion of a major crypto company have wreaked havoc on the industry.” Silbert also said Three Arrows Capital had invested Genesis with $447.5 million and $78 million worth of $4,550 million. Revealed that it still owes Bitcoin (BTC). This he will mature in May 2023. expressed intense dissatisfaction towards the process.
Cointelegraph reported on Nov. 16, 2022 that Genesis had suspended withdrawals due to “unprecedented market turmoil.” At the time, the company reportedly $175M Worth of Funds Stuck in FTX and already Received $140 million stock injection cover the loss.
Previously, Genesis Global’s estimated shortfall was thought to be $1 billion. Genesis lent more than $2.3 billion to now-defunct hedge fund Three Arrows Capital, causing the company to go bankrupt in June 2022, according to Cameron Winklevoss, co-founder of crypto exchange Gemini. Gemini said it lent more than $900 to Genesis as part of the Earn program, which provides Genesis with customer deposits worth millions. 340,000+ users to be influenced Gemini Earn <> Genesis Global as a result of the dispute.
— Cameron Winklevoss (@cameron) January 10, 2023
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