• Digital Currency Group (DCG), the parent company of crypto lender Genesis, is looking to sell some of its venture-capital portfolio worth around $500 million to pay off creditors.
• Genesis owes its creditors over $3 billion, prompting DCG to consider asset sales in order to raise fresh capital.
• Tensions between DCG and Genesis creditors have been running high, with Gemini co-founder Cameron Winklevoss even calling for DCG CEO Barry Silbert’s ouster earlier this week.
Digital Currency Group (DCG), the parent company of crypto lender Genesis, is reportedly looking to sell some of its venture capital portfolio worth around $500 million to pay off its creditors. This comes after Genesis, a major player in the digital currency lending market, has been unable to meet its debt obligations, owing creditors over $3 billion.
The Financial Times reported that DCG has been considering offloading some of its venture-capital portfolio, which includes investments in major crypto-related companies like Coinbase (COIN), Kraken and Blockchain.com, as well as the now bankrupt FTX. It is worth noting that many of DCG’s assets are illiquid, however, and a sale will likely take some time to be completed.
Tensions between DCG and Genesis creditors have been running high, with Gemini co-founder Cameron Winklevoss even calling for DCG CEO Barry Silbert’s ouster earlier this week. This was likely due to the fact that many Genesis customers and creditors have not been able to access their funds since the lender stopped withdrawals late last year.
The situation is likely to remain tense in the coming weeks as DCG continues to look for ways to pay off its creditors. This could potentially include further asset sales, though no further details have been revealed at this time. It is also unclear how the creditors will respond to this situation, or what sort of debt restructuring plans may be in the works.
What is clear is that the crypto lending industry has been hit hard by the recent market downturn, with many lenders having to restructure their debts or look for ways to raise capital. This situation serves as a reminder that, while digital currencies can offer great opportunities for investors, they can also be a risky endeavor and should always be approached with caution.