TRON Foundation founder Justin Sun has revealed that he is willing to spend up to $1 billion to buy the assets of Digital Currency Group (DCG), the parent company of troubled crypto lender Genesis.
In an interview with Reuters, the Chinese crypto entrepreneur Told He is willing to spend that amount to buy a portion of DCG’s assets “based on his assessment of the situation.” Sun did not specify what portions of DCG’s VC assets it plans to acquire.
As mentioned, crypto brokerage firm Genesis owed more than $3 billion For creditors, forcing DCG, its parent company and a crypto conglomerate, to consider selling some assets in its large venture portfolio to raise funds.
DCG lists over 160 crypto companies in its portfolio on its website, of which it has acquired 28. CoinDesk, Grayscale and Genesis are three of the largest companies listed in its portfolio. The company is also an investor in US crypto exchanges Coinbase and Kraken, and its other holdings include US firm Circle, which runs the stablecoin USDC.
Sun is the founder of a blockchain network called TRON and an advisor to crypto exchange Huobi. He is one of the richest people in crypto but his net worth is unknown.
Notably, Sun previously said it was ready to provide beleaguered cryptocurrency exchange FTX with billions in aid before Exchange filed for bankruptcy in mid-November. However, the deal ultimately did not go through.
In the wake of the collapse of FTX, Genesis announced that it is temporarily suspend redemption and new loan originations. In a statement on Twitter, Genesis said that “unusual withdrawal requests” have exceeded its “current liquidity”.
The crypto lender has since revealed it owes $175 million. off in its FTX trading account. the company tried to raise emergency loan of $1 billion That failed, saying in mid-November that it was facing a “liquidity crunch due to certain illiquid assets on its balance sheet”.
The troubles at DCG and its daughter company, Genesis, have fueled tensions between DCG CEO Barry Silbert and Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, which partnered with Genesis to offer high-interest accounts. It turns out that Genesis owes Gemini customers $900 million.
Cameron has been asking Silbert for some time now to resolve the issue. Earlier this week, he also wrote an open letter to the DCG Board earlier this week, demanding remove silbert, He also claimed that DCG defrauded over 340,000 Gemini and Earn users by falsely claiming that Genesis was solvent.
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