Troubled Crypto Lender Genesis Owes More Than $3 Billion To Its Creditors: FT

DCG is reportedly considering selling a portion of its venture capital portfolio, valued at approximately $500 million, as a means of raising funds.

According to a report by the Financial Times, crypto broker Genesis owes creditors more than $3 billion and its owner, Digital Currency Group (DCG), is exploring the sale of assets in its venture portfolio to raise money. 

The report states that DCG is considering selling parts of its venture capital portfolio, which includes 200 crypto-related projects such as exchanges, banks, and custodians in at least 35 countries and is worth around $500 million. Both Genesis and DCG did not immediately respond to requests for comment, as reported. 

The crypto industry has been under pressure recently as investor interest in digital assets has waned following the collapse of major exchange FTX last year. Genesis, which brokers digital assets for financial institutions such as hedge funds and asset managers, has already cut 30% of its workforce earlier this month, and its parent company, DCG, has faced calls for the removal of its CEO, Barry Silbert.

On Tuesday, Gemini President Cameron Winklevoss, posted an open letter on Twitter, in which he strongly criticized Digital Currency Group (DCG) the parent company of Genesis, accusing it of deceiving and defrauding over 340,000 Earn program users and providing false information about its solvency.

Winklevoss also called for the removal of DCG CEO, Barry Silbert. In response, Silbert denied the accusations and said that funds were never combined among DCG’s subsidiaries and that the relationship with Three Arrows Capital was limited to a lending and trading agreement. He also added that Three Arrows Capital had made separate investments in Grayscale products.