Sun may use his personal fortune to help Genesis’ struggling parent business.
According to a Reuters story on Jan. 13, Justin Sun may invest $1 billion of his cash to acquire Digital Currency Group assets.
Sun informed the media outlet that he could spend that money to purchase a piece of DCG’s assets “depending on their assessment of the scenario.”
Sun’s net worth could not be determined by Reuters. However, projections from 2021 indicate that DCG is worth around $10 billion and manages $50 billion in assets. Sun’s net worth is estimated to be between $250 million and $3 billion, depending on whether the figures include both crypto and traditional assets. As a result, any transaction would most likely involve only a small fraction of DCG’s holdings.
Reuters was unable to ascertain which assets Sun was considering purchasing, and the Digital Currency Group made no mention of any of the foregoing.
Entities connected to both Sun and DCG face difficulties. Genesis, a DCG subsidiary, said earlier this month that it would lay off 30% of its workforce owing to market conditions. Last year, Genesis ceased customer withdrawals from both its lending business and its Gemini partner programme, Earn. It is said to owe clients more than $3 billion.
Huobi, an Asia-based cryptocurrency exchange where Sun serves as an advisor, announced this week that it would lay off 20% of its workforce. As the firm continues to serve clients, the exchanges’ problems appear to be restricted to employee expenditures.
Sun has indicated interest in a number of failing companies, including DCG. In late 2022, he also attempted to purchase FTX and Credit Suisse assets.
Sun is best known as the founder and former CEO of TRON, however he no longer holds any official leadership positions with that blockchain project.