Crypto mogul and blockchain-based platform Tron’s founder Justin Sun, recently discussed plans to buy Digital Currency Group’s (DCG) assets worth $1 billion. DCG is the parent company of Crypto trading firm Genesis.
Genesis halted customers’ funds withdrawal after Sam Bankman-Fried (SBF) led crypto exchange FTX filed for bankruptcy in November 2022. Its lending arm, Genesis Global Capital has $2.8 billion in total active loans as per Q3 (2022) statements.
The Securities and Exchange Commission (SEC) charged crypto exchange Gemini Trust and Genesis Global Capital for offering “unregistered securities” to investors. The US-based agency also pointed to a contract between the two, Master Digital Asset Loan Agreement (MDLA) to deliver services to users via Gemini Earn crypto assets lending program, according to a complaint filed on January 12, 2023.
As per its official website, DCG touts itself as “The epicenter of the bitcoin and blockchain industry” and has invested in over 100 companies across 30 nations. The group owns and operates the largest crypto asset management firm, Grayscale Investments. It is also the parent company of Foundry, a financing and advisory firm, Crypto exchange & wallet entity Luno, API-centric end-to-end platform TradeBlock and more.
As per media reports, Justin Sun may buy some of DCG’s assets. DCG’s assets are worth nearly $10 billion with $50 billion in assets under management (AUM) in 2021. Sun’s assets range anywhere between $250 million to $3 billion. His total wealth is undisclosed.
Earlier this month, the SEC and U.S. Department of Justice’s Eastern District of New York (EDNY) began investigating transfers between the crypto conglomerate DCG and Genesis, according to Bloomberg. A promissory note of $1 billion is due by June 2032, resulting from Genesis’s exposure to the hedge fund Three Arrow Capital’s bankruptcy last year, said the group’s CEO and founder Barry Silbert.
Sun is an ambassador of Grenada to the WTO (World Trade Organization) and also holds an advisory role in crypto exchange Huobi Global. Huobi recently disclosed shed 20% of its workforce.
Back in November 2022, Ripple Labs’s CEO Brad Garlinghouse and Sun showed their willingness to buy FTX assets.
Source: https://www.thecoinrepublic.com/2023/01/14/crypto-mogul-justin-sun-looking-to-buy-crypto-conglomerate-dcgs-assets/