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DCG's crypto broker Genesis owes creditors more than $3 billion - source

Published 01/12/2023, 11:03 AM
Updated 01/12/2023, 11:06 AM
© Reuters. Word "Crypto" and stock graph are seen through magnifier displayed in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration

By Manya Saini and Hannah Lang

(Reuters) -Crypto broker Genesis owes creditors more than $3 billion, a person familiar with the matter told Reuters, as woes pile up for its owner, venture capital company Digital Currency Group (DCG).

DCG is considering offloading parts of its venture capital holdings to raise money, the Financial Times reported Thursday. DCG's portfolio includes 200 crypto-related projects such as exchanges, banks and custodians in at least 35 countries, and are worth about $500 million, the report added.

Genesis declined to comment. DCG did not immediately respond to a request for comment.

Several crypto companies have lately been under pressure as they try to navigate unprecedented industry-wide turmoil amid waning investor appetite for digital assets after major exchange FTX blew up late last year.

Earlier this month, Genesis – which brokers digital assets for financial institutions like hedge funds and asset managers -cut 30% of its workforce in a second round of layoffs in less than six months, according to a person familiar with the matter.

© Reuters. Word

Meanwhile, its parent DCG saw calls from Cameron Winklevoss, co-founder of crypto exchange Gemini, for the removal of DCG's chief executive officer, Barry Silbert, earlier this week amid tensions between the high-profile executives.

Stamford, Connecticut-based DCG is also the parent company of several high-profile crypto firms, including crypto asset manager Grayscale.

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