Crypto mogul Barry Silbert seeks reassurance at Digital Currency Group

Barry Silbert, CEO of Digital Currency Group

Barry Silbertthe boss of Group of digital currenciessaid that his group would also resist this new crypto winter. According to NYTits subsidiary Genesis Global Capital hired the bank Moélis to explore different options including the possibility of declare bankruptcy.

In a recent letter, the founder and CEO of Digital Currency Group (DCG) tried to calm down shareholder IN financial health of his group while Genesis Global Capitalthe loan unit of its subsidiary Genesis, encounter considerable difficulties after the fall of FTX.

yesterday, Bloomberg reported that Genesiswho would have already tried to get, without success, a $1 billion in loans before he stopped redemptions in his ministry, he was still looking for fundraising to get your head above water. The crypto broker, which for its part indicated that it had no intention of filing for bankruptcy “immediately,” would have discussed with Binance in particular and Apollo Global Management.

We’ve weathered past crypto winters, and while this one may seem tougher, we’ll collectively come out of it stronger.” cried Barry Silbert in his letter to shareholders.

The crypto-billionaire then returned to suspension of Genesis Global Capital redemptionswhich significantly influenced French The house of coinsand indicated that it was a “liquidity and duration mismatch issue in the Genesis loan portfolio,” stating that there were “ no impact about other Genesis activities.

“Genesis management and its board of directors have decided to hire financial and legal advisors and the firm is exploring all possible options amid the fallout from the FTX explosion,” he added.

According to New York TimesGenesis Global Capital work with the investment bank Moélis to explore several options including the possibility of declaring bankruptcy.

“In recent days, there have been discussions about intercompany loan between Genesis Global Capital and DCG. For those unaware, in the normal course of business, DCG borrowed money from Genesis Global Capital in the same manner as hundreds of crypto investment firms. DCG currently has an obligation to Genesis Global Capital of approximately $575 million due in May 2023. let it be known Silbert.

Considered one of the largest brokers in the industry, Genesis since 2013 provides exchange, credit and custody services for institutional investors. In 2021, the DCG-owned company was issuing for $131 billion in loans. conglomerate Group of digital currencieswhich also owns Coindesk, Gray stairs AND Lunaraised $700 million by the end of 2021 with a valuation of 10 billion dollars.

We appreciate the words of encouragement and support, as well as offers of investment in DCG. We will let you know if we decide to do a fundraising round. Despite challenging industry conditions, I am more excited than ever about the potential of cryptocurrencies and blockchain technology over the coming decades, and DCG is determined to stay at the forefront,” Silbert concluded.

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