Barry Silbert is the founder and CEO of active crypto conglomerate Digital Currency Group. Today, its crypto lending arm, Genesis, is set to file for bankruptcy. A first domino that can lead to the fall of others.
bad weather for crypto entrepreneurs. until Sam Bankman-Fried is fighting the law after his FTX empire goes bankrupt, it’s his turn Barry Silbert to see every company in his Digital Currency Group conglomerate falter. Its lending subsidiary, Genesis, is said to be preparing to file the necessary paperwork to obtain Chapter 11 protection, according to The Wall Street Journal.
A spokesman had acknowledged earlier this month that the company was navigating “unprecedented sector challenges” after announcing 30% of its workforce would be laid off. However, a Genesis somersault can have a domino effect on the entire conglomerate.
Buffett of Crypto
A finance major, Silbert is one of the pioneers he wanted to make cryptocurrencies and traditional finance converge. A desire that earned him the title of entrepreneur of the year by Ernst & Young and his inclusion in the Forbes ranking of “40 under 40”40 people under the age of 40 have left their mark.
He entered the crypto world in 2012. Soon after, he founded Grayscale investment and its parent company Group of Digital Currencies (DCG), which in 2020 will expand its fields of activity.
It is said that in the face of excessive growth, Barry Silbert is no longer able to control the risks of each subsidiary himself.
“Barry Silbert built his company according to the model developed by Warren Buffett,” we read in Wall Street. However, it is said that in the face of excessive growth, Barry Silbert is “no longer able to manage the risks themselves of each subsidiary.
Digital Currency Group brings together Grayscale (crypto asset manager), CoinDesk (crypto information site), Genesis (lender), Foundry (mining company), Luno (crypto stock market operator), TradeBlock (crypto data), HQ and DCG Real Estate (property management companies).
The first domino
Genesis recently found itself unable to cope with withdrawals from its customers. It had to stop issuing new loans and laid off 60 people.
Genesis had given him great loans Capital of three arrows Ltd, a Singapore-based hedge fund that has bet TerraUSD cryptocurrency. TerraUSD collapsed last May and Three Arrows went bankrupt.
A bankruptcy order is expected in the coming days.
Gray stairs Bitcoin Trustone of Grayscale’s listed investment vehicles, has seen its value decline by 63% in 2022. Assets under management have shrunk in one year from $40 to $12.3 billion.
How much for CoinDesk, the total or partial sale of the company under consideration would have already received expressions of interest, for a discounted price.
He had seen it
Barry Silbert hedges against this inability to control risk. For him, most of the obstacles of Genesis, and therefore of DCG, are a consequence ofthe collapse of FTX and the crypto market.
“It’s not about our survival,” he insists. And yet, Silbert had predicted this turn in crypto. He had even repeatedly warned against dangerous behavior.
- He graduated from Emory University in Finance
- In 1998, he joined the investment bank Houlihan Lokey as a partner.
- In 2004, he took over the leadership of Limited Partners
- In 2008, he founded the second exchange platform Market, sold in 2015 to Nasdaq.
- In 2015, he established DCG
- His fortune is estimated by Forbes at over 3 billion dollars.