Troubled crypto trading and lending firm Genesis Global has lent some $2.8bn to various crypto firms, including a large loan to its parent company Barry Silbert’s Digital Currency Group (DCG).
Debts outstanding on Genesis’ balance sheet also included intercompany loans, such as those from lending subsidiary Genesis Global Capital to crypto brokerage Genesis Global Trading. The latter subsidiary is a major player in the crypto industry, serving as an important counterpart to many of the largest crypto firms.
there was news informed of By Bloomberg on Tuesday, the article cited people “familiar with the matter”.
The report also cited a letter written by Digital Currency Group CEO Barry Silbert to shareholders, where Silbert revealed that DCG owes $575m to Origin, which is due to be paid in May of 2023.
The letter further states that Genesis owes DCG a purported promissory note of $1.1 billion, due in June 2032. The loan was reportedly set up when DCG assumed some of Genesis’ liabilities following the collapse of the crypto hedge fund. three arrows capital In early July this year.
Media reports at the time indicated Genesis had contact with Three Arrows Capital And troubled crypto lender Babel Finance is valued at “hundreds of millions” of dollars.
Genesis Global Capital suspends redemptions to customers on November 16, sending shockwaves through the industry and markets.
Silbert: “We will come out stronger”
In addition to the above loans, DCG’s only debt is a $350 million line of credit, which it “acquired from a small group of lenders”. [venture capital firm] Eldridge,” Silbert’s letter said.
“Let me be clear: DCG will remain the industry’s leading developer, and we remain committed to our long-term mission to accelerate the development of a better financial system,” the letter said.
Silbert’s letter stated, “We have weathered the past crypto winter and while it may feel more severe, we will get out of it collectively.”
Digital Currency Group is a leading crypto conglomerate with investments in dozens of crypto-related companies, including well-known firms such as Chainalysis, BitFlyer, BitPay, Blockstream, Ledger, Ripple, Coinbase, eToro and Kraken.
Bitcoin Crypto Related Post