Digital Currency Group (DCG) owner of Grayscale crypto brokerage Genesis owes creditors over $3 billion.

Genesis Global Trading Cryptocurrency Broker It allegedly owes creditors more than $3 billion. followAs reported by the Financial Times, on Jan. 12, parent company Digital Currency Group (DCG), which owns Grayscale Investments and a series of digital asset trusts, An attempt must be made to sell part of the venture capital holdings to get the money back.

DCG’s venture capital conglomerate has more than 200 crypto-related projects “such as exchanges, banks, and custodians in at least 35 countries,” with a total value of about $500 million, reportedly hiring Genesis. Investment bank Moelis to explore strategic options. As of Jan. 5, Genesis recently laid off 30% of its workforce in a bid to cut costs. This is the second time in six months.

On Jan. 12, DCG chief Barry Silbert wrote to shareholders: “The bad guys and explosions of leading crypto companies have wreaked havoc on the industry,” Silbert also revealed that Three Arrows Capital still owes Genesis $447.5 million and 4,550 Bitcoin (BTC) worth $78 million to maturity. As of May 2023, Three Arrows Capital is currently in the process of bankruptcy and creditors have expressed strong dissatisfaction with the process.

On November 16, 2022, Genesis stopped withdrawals claiming it was due to At the time, the company reportedly had $175 million of capital attached to FTX and received an additional $140 million to offset losses.

Previously, Genesis Global was believed to be missing about $1 billion in revenue. According to Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, Genesis lent more than $2.3 billion to hedge fund Three Arrows Capital, resulting in a $1.2 billion loss when the firm failed to “find out a $1.2 billion loss.” June 2022 and Gemini said it had lent over $900 million worth of customer deposits to Genesis as part of its Earn program, leaving more than 340,000 users affected.

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