Justin Sun is rumoured to be interested in the assets of Digital Currency Group (DCG), the parent company of beleaguered crypto broker Genesis and many other industry firms.
According to Reuters, the founder of blockchain network Tron (TRX) and advisor to cryptocurrency exchange Huobi is willing to spend up to $1 billion of his personal capital to buy some of DCG’s assets “depending on their judgement of the situation.”
Due to liquidity issues caused by the failure of crypto companies Three Arrows Capital and FTX, Genesis ceased customer withdrawals in November. The firm claims to have $175 million in crypto derivatives in its FTX trading account.
Genesis’ parent company DCG is considering selling $500 million in venture capital assets to acquire finance as it reportedly confronts more than $3 billion in debt.
The conglomerate has invested in over 200 crypto-related projects, including exchanges, banks, and custodians. It also has a large number of crypto assets.
Sun, on the other hand, did not indicate which DCG properties he is interested in purchasing.
The billionaire’s interest in acquiring part of DCG’s properties coincides with Huobi’s announced plans to lay off approximately 20% of its workforce. Sun predicted that the Seychelles-based exchange would finalise the dismissal by the end of the first quarter.