Investors are worried that liquidity problems for crypto financial-services firm Genesis could spill over to its parent company, Digital Currency Group, and damage the already battered crypto market even further.
, and damage the already battered crypto market even further, after Genesis’s lending arm paused withdrawals last week.
A letter to investors by Silbert on Tuesday, obtained by MarketWatch, partly revealed the interconnectedness between DCG and Genesis. DCG has a liability to Genesis of about $575 million, due in May 2023, Silbert said in the letter. He also mentioned a $1.1 billion promissory note due in 2032, which was the result of DCG assuming Genesis’s liabilities from the default of crypto hedge fund Three Arrows earlier this year.
However, without outside funding, Genesis’s lending unit will likely see increasing withdrawals once the freeze is lifted, and might be facing bigger problems and even be forced into bankruptcy, said Eric Snyder, a bankruptcy attorney at Wilk Auslander.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Digital Currency Group owes $575 million to Genesis Trading's crypto lending armVenture capital company Digital Currency Group, which owns Genesis Trading and cryptocurrency asset manager Grayscale, owes $575 million to Genesis' crypto lending arm, Chief Executive Barry Silbert said in a letter to shareholders on Tuesday afternoon.
Leer más »
DCG's Foundry Digital buying Compute North facilities amid possible Genesis bankruptcyDCG's Foundry Digital is buying two cryptocurrency mining facilities and other assets from Compute North.
Leer más »
Genesis Global Capital Confirms Hiring Investment Bank Moelis, Talks With Potential InvestorsCrypto lender also started talks with its largest creditors and borrowers, including Gemini and parent company DCG, to agree on a solution.
Leer más »
Non-profit Provenance blockchain supports digital currency efforts by Apollo, Hamilton LaneHamilton Lane and Apollo Global Management will now allow investors to take part in funds by making digital payments on the blockchain, said technology executives taking part in the programs.
Leer más »
WSJ News Exclusive | Digital Currency Group Says Revenue Will Fall This YearDigital Currency Group said 2022 revenue is on track to reach $800 million, down about 20% from what the cryptocurrency-focused conglomerate expected to generate last year
Leer más »
Gemini is working with Genesis and DCG on solution for Earn redemptionsGemini said it is working with Genesis and Digital Currency Group to find a solution for users unable to redeem from the crypto exchange's Earn product.
Leer más »