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Cryptocurrency

DCG owes creditors over $3B, considering $500M VC portfolio sale

Cryptocurrency broker Genesis Global Trading allegedly owes its creditors more than $3 billion, according to a Jan. 12 report from the Financial Times. Its parent, the Digital Currency Group (DCG), which also owns Grayscale Investments and its series of digital asset trusts, seeks to sell part of its venture capital holdings to offset the shortfall.

According to people familiar with the matter, DCG’s venture arm has more than 200 crypto-related projects “such as exchanges, banks and custodians in at least 35 countries,” with a total valuation of around $500 million.

Previously, it was thought that Genesis Global had an estimated shortfall of $1 billion. According to Gemini founder Cameron Winklevoss, Genesis lent more than $2.3 billion to now-defunct hedge fund Three Arrows Capital, leaving it with a $1.2 billion loss when the firm failed in June 2022. More than 340,000 users are affected in the wake of the Gemini Earn <> Genesis Global dispute.

Cointelegraph reported on November 16, 2022, that Genesis halted withdrawals citing “unprecedented market turmoil.” At the time, the company reportedly had $175 million worth of funds stuck on FTX and had already received a $140 million equity infusion to cover losses. 

This is a developing story, and further information will be added as it becomes available.