Breaking: DCG owes creditors over $3B, considering $500M VC portfolio sale
Cointelegraph
Published Jan 12, 2023 08:53AM ET
Updated Jan 12, 2023 10:40AM ET
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. Genesis reportedly hired investment bank Moelis (NYSE:MC) to explore strategic alternatives, although people familiar with the matter said there was little capital infusion interest. On Jan 5., Genesis laid off 30% of its staff as a cost-cutting measure, a second of its kind in six months' time.
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Written By: Cointelegraph
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