Barry Silbert's DCG Offloads Discounted Grayscale Shares
DCG And Genesis Agree Deal With Creditors
News about Grayscale’s discounted asset sales came shortly after DCG and its crypto lending subsidiary Genesis reached an agreement with creditors to bail out the firm. The agreement will see Silbert’s group sell off its crypto lending and trading businesses in Genesis as the subsidiary weathers bankruptcy.
Genesis which filed for chapter 11 protection after massive exposure to fallen crypto entities in 2022 owes more than $3 billion to creditors. These creditors include Winklevii-founded Gemini, a crypto exchange that claims Genesis owes north of $700 million to over 340,000 Gemini Earn users.
Gemini and Genesis have been entrenched in a public feud recently with the former threatening legal actions against Silbert’s companies.
DCG’s lending and trading affiliate suffered massive exposure in the hundreds of millions to former crypto powerhouses companies like hedge fund Three Arrows Capital and FTX crypto exchange. Both companies have also filed for bankruptcy and are currently in court to reach agreeable settlements with creditors.
Michael Moro stepped down as CEO amid layoffs and bankruptcy restructuring at the crypto lending giant back in August 2022.
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