The cryptocurrency lending unit of Digital Currency Group (DCG) has been holding confidential talks with various groups of creditors in the midst of a liquidity crisis. He has warned that he might have to file for bankruptcy if he can’t raise cash, he previously reported. Bloomberg.
The representatives of Genesis Global Capital They did not immediately respond to requests for comment. A DCG representative declined to comment. Talks are ongoing and plans could change, the cited sources added.
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The financial pressure on DCG from Barry Silbert began to emerge after the collapse of the hedge fund Three Arrows Capital. Genesis suspended withdrawals in November, shortly after the crypto exchange FTX, where Genesis had some of its funds, to declare bankruptcy.
Bankruptcies have had a ripple effect on the cryptocurrency market Gemini Trustdirected by Cameron and Tyler Winklevoss. Gemini Earn, a service that allowed Gemini users to earn returns for lending their coins through Genesis, also suspended withdrawals.
Creditors, Genesis and DCG have exchanged various proposals but have so far failed to reach an agreement, the people said. Kirkland & Ellis and Proskauer Rose they have been advising groups of creditors.
DCG told shareholders it was suspending quarterly dividends to conserve cash, according to a Jan. 17 letter to shareholders seen by Bloomberg.
Source: Gestion
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