DCG’s Crypto Broker Genesis Owes Creditors Over $3 Billion – Source

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Jan 12 (Reuters) – Crypto broker Genesis owes creditors more than $3 billion, a person familiar with the matter has told Reuters, as woes mount for its owner, venture capital firm Digital Currency Group (DCG).

DCG is considering offloading some of its venture capital holdings to raise funds, the Financial Times reported on Thursday. DCG’s portfolio includes 200 crypto-related projects such as exchanges, banks and custodians in at least 35 countries, and is worth around $500 million, the report adds.

Genesis declined to comment. DCG did not immediately respond to a request for comment.

Several crypto companies have recently come under pressure as they try to navigate unprecedented industry-wide turmoil amid waning investor appetite for digital assets after an exchange exploded. major FTX at the end of last year.

Earlier this month, Genesis, which trades digital assets for financial institutions such as hedge funds and asset managers, cut 30% of its workforce in a second round of layoffs in less than six months. , according to a person familiar with the matter.

Meanwhile, its parent DCG received calls from Cameron Winklevoss, co-founder of crypto exchange Gemini, for the removal of DCG chief executive Barry Silbert earlier this week amid tensions between top executives. high level.

Stamford, Connecticut-based DCG is also the parent company of several top crypto companies, including crypto asset manager Grayscale.

Reporting by Manya Saini in Bengaluru and Hannah Lang in Washington; additional reporting by Elizabeth Howcroft in London; Editing by Shounak Dasgupta, Shailesh Kuber and Conor Humphries

Our standards: The Thomson Reuters Trust Principles.

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