According to the Financial Times, Digital Currency Group (DCG) might sell assets from its venture portfolio to raise funds to help one of its subsidiaries, Genesis, make up for a $3 Billion shortfall.
DCG has stakes in more than 200 crypto projects such as the data firm Dune Analytics, Ethereum block explorer Etherscan, crypto exchange Coinbase, and USD Coin issuer Circle. These projects could soon be up for sale. The portfolio is worth around $500 Millon.
Reportedly, Genesis seems helpless since mid-November, when the company suspended client withdrawals for its lending arm citing exposure to the now-collapsed FTX.
On November 10th, 2022, Genesis said on Twitter that its derivatives business has approximately $175 million locked in an FTX trading account.
Genesis said at the time “This does not impact our market-making activities. Furthermore, our operating capital and net positions in FTX are not material to our business. Circumstances surrounding FTX have not impeded the full functioning of our trading franchise.”
Gemini co-founder, Cameron Winklevoss, shared an earn update that was an open letter to the Board of DCG.
Genesis had partnered with Gemini’s Earn. Gemini has had to freeze customers’ withdrawals. Winklevoss claimed in an open letter that Genesis owes customers of the Winklevoss-founded crypto brokerage firm $900 million.
Earlier this week, Winklevoss publicly accused Genesis and DCG of accounting fraud. And then the same day, DCG CEO Barry Silbert said “I’ve been reflecting quite a bit about the past year, the state of the industry and where things go from here. Here is an update to address those reflections, other developments and some speculation about DCG.”
About his experience from last year, Silbert noted “This past year has been the most difficult of my life. Bad actors & blow-ups have wreaked havoc on our industry, w/ ripple effects extending far & wide. Although DCG, our subsidiaries, & many of our portfolio companies are not immune to the effects of the present turmoil.”
“It has been challenging to have my integrity and good intentions questioned after spending a decade pouring everything into this company and the space with an unrelenting focus on doing things the right way,” Silbert further added.
Silbert noted “The industry has a lot of hard work to do to re-establish its credibility & reputation, which have been all but destroyed by a wave of unprecedented fraud & criminal behavior. This is going to be a challenging year for all of us, but I remain optimistic.”
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/01/14/dcg-may-sell-assets-to-help-genesis/