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DCG Mulls Venture Portfolio Sale to Shore up $3B Genesis Shortfall: Report

DCG Mulls Venture Portfolio Sale to Shore up $3B Genesis Shortfall: Report

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Digital Currency Group would possibly sell belongings from its enterprise portfolio to assist Genesis shortfall, its wholly-owned subsidiary, cowl a $3 billion shortfall, in keeping with a report on Thursday from the Financial Times.

That means DCG’s stakes in additional than 200 crypto tasksβ€”together with information agency Dune Analytics, Ethereum block explorer Etherscan, crypto exchange Coinbase, and USD Coin issuer Circleβ€”may quickly be up on the market.Β 

The portfolio is priced at about $500 million, in keeping with the Financial Times report, citing unnamed individuals acquainted with the matter.

Genesis has been rumored to be struggling to remain afloat since mid-November when the corporate suspended consumer withdrawals for its lending arm citing publicity to the now-collapsed FTX.Β  The announcement got here simply days after the crypto exchange, together with greater than 130 different entities, filed for chapter on November 11.

But messaging from Genesis concerning the extent of its publicity has been inconsistent.

On November 10, the corporate mentioned on Twitter that its derivatives enterprise has roughly $175 million locked in an FTX buying and selling account.Β 

β€œThis does not impact our market-making activities,” Genesis mentioned on the time. β€œFurthermore, our operating capital and net positions in FTX are not material to our business. Circumstances surrounding FTX have not impeded the full functioning of our trading franchise.”

As a knock-on impact of the frozen withdrawals, Gemini’s Earn product, which makes use of Genesis as its lending accomplice, has needed to freeze clients’ withdrawals. It’s estimated that Genesis owes clients of the Winklevoss-founded crypto dealer $900 million.Β 

Since then, the 2 corporations have exchanged critical criticisms and accusations. Earlier this week, Gemini CEO and co-founder Cameron Winklevoss publicly accused crypto dealer Genesis and DCG of accounting fraud.Β 

The similar day, DCG CEO Barry Silbert shot again at what he known as β€œanother desperate and unconstructive publicity stunt,” saying that the corporate was β€œpreserving all legal remedies in response to these malicious, fake, and defamatory attacks.”

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