Tron founder Justin Sun is reportedly planning to spend as much as $1 billion to acquire assets of Genesis’ parent company, Digital Currency Group (DCG), Reuters reported.
According to the report, the Chinese entrepreneur said he would be willing to spend $1 billion on DCG’s assets “depending on their evaluation.” Sun did not specify the assets he would be interested in acquiring from the beleaguered crypto firm.
This is not the first time Sun would show interest in an embattled firm’s assets. During the FTX’s liquidity issues, the exchange’s disgraced founder Sam Bankman-Fried contacted him for help. Reports later emerged that Sun showed interest in buying the bankrupt exchange’s assets.
Meanwhile, Justin Sun and entities related to him have had to battle a recent flux of FUD.
Last week, Huobi, an exchange where Sun serves as an adviser, faced massive withdrawals following its decision to sack 20% of its staff. At the time, the crypto community was inundated with reports of unrest at the company. Blockchain analytical firm Nansen’s data later showed that the exchange’s weekly outflow crossed $100 million, far ahead of other rivals.
Wu Blockchain also reported that some FUD emerged around Sun’s Tron blockchain. According to the reporter, some OTC merchants in the Chinese market said they no longer accept Tron-based USDT, requesting users to swap their assets for Ethereum-based USDT before trading.
Wu said the merchants rejected Tron-based USDT because it did not meet the anti-money laundering requirements of tools like Chainalysis.
DCG Financial Woes
Crypto lender Genesis halted customer withdrawals in November because of the FTX collapse. Reports later revealed that the firm owes its creditors around $3 billion. The firm recently laid off 30% of its workers, and there are suggestions that it might file for bankruptcy.
Meanwhile, DCG and crypto exchange Gemini has been engaged in a public spat. The exchange co-founder Cameron Winklevoss called for the sack of the crypto conglomerate CEO Barry Silbert in a January 10 open letter. To cut costs, the group will shut down its wealth management division HQ on January 31.
Besides, several reports have revealed that financial regulators are also investigating DCG. The SEC recently charged Genesis and Gemini with unregistered securities sales.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
Source: https://beincrypto.com/justin-sun-to-spend-1b-on-dcg-assets/