Crypto Lender Genesis Owes Creditors Over $3B: FT
Digital Currency Group, Genesis’ parent company, is reportedly looking to sell some of its venture-capital portfolio, worth around $500 million.
Troubled crypto lender Genesis owes its creditors over $3 billion prompting its parent company, Digital Currency Group, to look at asset sales to pay off the debt, the Financial Times reported on Thursday, citing sources.
DCG is considering offloading some of its venture-capital portfolio, worth around $500 million, the report said. The sale is part of DCG’s effort to raise fresh capital after Genesis stopped withdrawals late last year.
DCG declined to comment.
Its portfolio includes crypto exchanges like Coinbase (COIN), Kraken and Blockchain.com, and the now bankrupt FTX. DCG’s assets are illiquid, however, and will likely take some time to sell, the report added.
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.
BY: Parikshit Mishra
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
