Breaking News
Investing Pro 0
💎 Reveal Undervalued Stocks Hiding in Any Market Get Started

DCG plans to offer Genesis creditors equity through bankruptcy package - report

Cryptocurrency Jan 19, 2023 22:41
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
BTC/USD
-0.01%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DCG
+0.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LUNAt/USD
-0.25%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Geoffrey Smith 

Investing.com -- Barry Silbert is offering a stake in his digital currency empire to the creditors of its stricken lending unit Genesis, according to a report in The Block.

Genesis, which suspended client withdrawals in November after the collapse of crypto exchange FTX, is preparing to file for chapter 11 bankruptcy as early as this week, according to Bloomberg. That would confirm what has been increasingly apparent over recent weeks - that Genesis' catastrophic losses during the 2022 crypto meltdown had rendered it insolvent.

Under a resolution package proposed by Silbert, its creditors would receive cash payments and equity in Silbert's Digital Currencies Group after a grace period lasting up to two years, The Block reported.

It's unclear whether that would be enough to satisfy Genesis' highest profile creditors, crypto pioneers Cameron and Tyler Winklevoss. The twin owners of investment platform Gemini have loudly complained in recent weeks that the 340,000 customers of its own lending program Earn are owed $900 million by Genesis. Gemini itself may be on the hook to make those customers whole if it can't disgorge the money from Genesis.

According to an open letter published last week by Cameron Winklevoss, Genesis had lost around half of the $2.4B it lent to hedge fund 3 Arrows Capital when the latter collapsed last spring, a victim of the Terra/Luna stablecoin implosion. According to Winklevoss, 3AC had been recycling much of that money into DCG's Grayscale Bitcoin Trust, one of only very few registered ETFs giving investors indirect access to Bitcoin. That ETF's value tumbled last year as Bitcoin lost over two-thirds of its value, while its discount to the net asset value of its holdings widened sharply, an indication of skepticism about the quality of the trust's asset backing.

DCG plans to offer Genesis creditors equity through bankruptcy package - report
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email