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HomeDeFiGenesis Has $2.8 Billion in Outstanding Loans, Parent Company DCG Was Lent...

Genesis Has $2.8 Billion in Outstanding Loans, Parent Company DCG Was Lent Substantial Amounts

Barry Silbert. Source: a video screenshot.

Troubled crypto buying and selling and lending agency Genesis Global has lent out some $2.8bn to varied crypto companies, together with giant loans to its mother or father firm, Barry Silbert’s Digital Currency Group (DCG).

The excellent loans on Genesis’ stability sheet additionally consisted of intercompany loans, comparable to one from lending subsidiary Genesis Global Capital to the crypto brokerage Genesis Global Trading. The latter subsidiary is a key participant in the crypto trade, performing as an essential counterpart for lots of the largest crypto companies.

The information was reported by Bloomberg on Tuesday, with the article citing folks “familiar with the matter.”

The report additionally cited a letter by Digital Currency Group CEO Barry Silbert to shareholders, the place Silbert revealed that DCG owes $575m to Genesis, with fee due in May of 2023.

The letter additional described a so-called promissory word owed by Genesis to DCG value $1.1bn, which can come due in June 2032. The mortgage was reportedly arrange when DCG assumed a few of Genesis’ liabilities following the collapse of crypto hedge fund Three Arrows Capital in early July this 12 months.

Media stories on the time indicated that Genesis had publicity to Three Arrows Capital and the troubled crypto lender Babel Finance value “hundreds of millions” of {dollars}.

Genesis Global Capital suspended redemptions for shoppers on November 16, sending shockwaves by way of the trade and markets.

Silbert: “We will come out stronger”

Besides the above-mentioned loans, DCG’s solely debt is a $350 million credit score facility “from a small group of lenders led by [venture capital firm] Eldridge,” Silbert’s letter stated.

“Let me be crystal clear: DCG will continue to be a leading builder of the industry and we are committed to our long-term mission of accelerating the development of a better financial system,” the letter famous.

“We have weathered previous crypto winters and while this one may feel more severe, collectively we will come out of it stronger,” Silbert’s letter added, whereas additionally declaring that DCG is on monitor to submit a good $800m in income this 12 months.

Digital Currency Group is a significant crypto conglomerate with investments in dozens of crypto-related firms, together with well-known companies comparable to Chainalysis, bitFlyer, BitPay, Blockstream, Ledger, Ripple, Coinbase, eToro and Kraken, to call just some.



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