DCG Third Quarter Revenue Reaches $188M Amid Lawsuit With NYAG

Key Points:

• Digital Currency Group reported Q3 revenue of $188 million, largely driven by its Grayscale asset management division.
• The company not only said DCG third quarter revenue, but also disclosed it has paid off approximately $575 million in debt since the end of 2022.
• DCG faces a lawsuit from the New York Attorney General, accusing the company and Gemini of concealing information from investors in their crypto-lending program.

Digital Currency Group (DCG), founded by finance veteran Barry Silbert, has reported a comprehensive revenue of $188 million in its third-quarter financial performance, primarily driven by its asset management division, Grayscale.

DCG Third Quarter Revenue Shows Strong Performance and Debt Repayments

According to Bloomberg, DCG third quarter revenue was announced amid one significant development, including the New York Attorney General’s (NYAG) lawsuit against DCG’s involvement in Gemini Earn, a program managed by Gemini but with its funds overseen by Genesis.

The NYAG case alleges that DCG and Gemini misled investors and concealed information from creditors. The lawsuit claims that Gemini’s internal analysis of Genesis exposed financial vulnerabilities, and it accuses former Genesis CEO Michael Moro and Silbert of attempting to conceal over $1.1 billion in investor losses.

The lawsuit focuses on Gemini’s failure to disclose the risks associated with its crypto-lending program, which commenced in 2021 and experienced setbacks due to high-profile bankruptcies in the crypto industry.

DCG Repays Millions in Debt While Defending Against Investor Lawsuit

In addition to announcing DCG third quarter revenue, the company has been actively addressing its debt situation. The company has disbursed $225 million to Genesis, making a total debt payment of approximately $575 million since the end of 2022. This payment stems from an agreement reached between Genesis and a major creditor group in August.

In addition to the debt payments, DCG also repaid a $350 million loan to Eldridge, a holding company owned by billionaire investor Todd Boehly, in March.

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