Digital Currency Group (DCG), the parent company of cryptocurrency lender Genesis, is divesting some of its holdings. Tron founder and Chinese crypto entrepreneur Justin Sun is ready to invest $1 billion to acquire the network.
In a recent interview with ReutersSun – the founder of Tron – said, “Depending on DCG’s assessment of the situation,” he will be willing to spend up to $1 billion in Digital Currency Group’s holdings.
Withdrawal Delay
Genesis is part of DCG, and its clients owe about $3 billion. The company’s lending arm stopped backing out on November 16, citing “extreme market dislocation.” This happened after the cryptocurrency exchange FTX filed for bankruptcy.
As such, Reuters needs assistance in determining Sun’s financial status. DCG is a $50 billion asset management company that is estimated to be worth $10 billion in 2021. Current estimates place Sun’s net worth anywhere from $250 million to $3 billion, depending on the consideration given to traditional assets and cryptocurrencies.
New events have appeared Sun promise billion in rescue funding for FTX collapsed, but still need to execute. In addition, Sun announced its support for the Binance Industry Recovery Fund.
Despite numerous requests for comment on the recent events and Sun’s interest, DCG has remained silent.
DCG Can Sell Their Property
Earlier this month, Genesis, a subsidiary of DCG, said it would cut personnel by up to 30% due to the current economic situation. Companies related to Sun and DCG are currently experiencing difficulties.
In an open letter published early in 2023, Gemini co-founders and twins Cameron and Tyler Winklevoss sued Genesis to repay $900 million in debt to Gemini Earn. Cameron then intensified the public spat by calling for DCG CEO Barry Silbert to be removed from his post.
As a result, Gemini Earn, a close partner of Genesis, stopped withdrawals and was officially closed on the same day as DCG’s subsidiary, which later officially died on January 8.
Although Silbert has tried to put some space between the company and the Genesis problem, the company is reportedly considering selling assets to cover Genesis’ $3 billion debt. Genesis was one of the first companies to suffer from the FTX outbreak, freezing withdrawals from its lending platform in mid-November.
Since then, it has been revealed that the company is considering bankruptcy and has retained a restructuring adviser. Reports also suggested that the company had tried and failed to raise a $1 billion rescue fund, while a company spokesperson said the reports had expired and that the company had engaged in “fairly positive negotiations” in late November.
At the time of writing, TRON TRXUSD is trading around $0.0635 which is 5.44% up.
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