According to a fresh rumor, the parent firm of crypto broker Genesis is considering selling venture capital assets to repay creditors.
With Genesis owing more than $3 billion, the Financial Times claims that Digital Currency Group (DCG) is considering selling up to $500 million in venture capital holdings to help make up the gap.
“DCG, a conglomerate that runs crypto media outlet CoinDesk and investment manager Grayscale, is seeking to acquire more funding after its Genesis arm was wrongfooted in November by the collapse of FTX.
According to persons familiar with the subject, DCG is considering selling sections of its venture capital holdings, which include 200 crypto-related ventures such as exchanges, banks, and custodians in at least 35 countries and are valued at around $500 million.
“Both DCG and Genesis have declined to comment on the report. According to the Financial Times, anonymous persons “familiar with the situation” were consulted.
When the FTX implosion caused collateral damage, Genesis halted consumer withdrawals in November 2022.
Gemini founder Cameron Winklevoss has written two open letters in the last two weeks, blaming DCG founder Barry Silbert for the failure of the Gemini Earn program, which was powered by Genesis.
Gemini teamed with Genesis to provide traders with up to 8% profits on their holdings through the Earn program. However, Genesis announced earlier this month that the bankruptcy of FTX had severely impacted its finances and that it could no longer pay out participants in Gemini’s Earn program.
In response to Winklevoss’s last open letter requesting that the DCG board fire Silbert, the DCG Twitter account supported Silbert and their organization.
This is another desperate and unconstructive media ploy from [Winklevoss] to shift criticism from himself and Gemini, who are fully responsible for managing Gemini Earn and marketing the program to its customers.
In reaction to these vicious, phoney, and defamatory attacks, we are safeguarding all legal remedies.
“DCG will continue to engage in a fruitful dialogue with Genesis and its creditors in order to reach a solution that benefits all parties.”
Silbert responded to the Gemini founder in a letter to DCG shareholders two days ago. Silbert claimed in the letter that the previous year had been the most trying of his life, both personally and professionally.
“Bad performers and frequent blow-ups have created havoc on our industry, with far-reaching consequences. Although DCG, our subsidiaries, and many of our portfolio companies are not immune to the current turmoil, it has been difficult to have my integrity and good intentions called into question after a decade of pouring everything into this company and the space with an unwavering focus on doing things the right way.”
