Genesis Hired Consultant To Investigate Its Financial Situation: Statement From Parent Company DCG CEO

Cryptocurrency investment firm Genesis, affiliated with Digital Currency Group (DCG), which is having a tough time, has hired investment bank Moelis & Company to explore all possible options, including a possible bankruptcy.

According to the news of The New York Times, Genesis Global Capital provides a solution to the financial crisis it is in and to examine all possible scenarios in detail. Moelis & Company agreed with. Genesis, FTX Due to its bankruptcy, it spent most of November struggling to raise new capital or reach a settlement with creditors. Genesis also added that derivatives units are approximate in the FTX trading account. $175 million He disclosed that he had locked funds.

Last week, Genesis announced that the company’s $2.8 billion reported that the crypto lending platform was suspending withdrawals. The first report by Bloomberg was that Genesis would soon file for bankruptcy if it couldn’t find bailout funds.

However, in line with the statements made by the company, it was announced that the situation was not so critical and that they would not file for bankruptcy any time soon. However, the company seeks loans from investors and it has been understood that the talks on this issue have been going on since Thursday last week.

In addition, the company, which says that it has reduced its search for 1 billion dollars of funds to 500 million, is looking for a possible deal. Binance and apolla Said to have spoken to him. However, the statements made by the two companies were that they did not plan to provide funds to the company, which was in a difficult situation.

Genesis’ misfortune wasn’t just that it had an investment in FTX. The company, which has experienced a similar situation in the past months, is the crypto hedge fund that announced its bankruptcy. Three Arrows Capitale (3AC) It was reported that hundreds of millions of dollars were lost due to the loans he gave.

Another noteworthy detail is Terra (Luna) crypto lending platform from victims of its collapse Voyager Digital’s to investigate their financial situation after suspending withdrawals and deposits on 1 July. Moelis & Company had an agreement with.

On the other hand, one of the critical parts of the Genesis process, Digital Currency GroupA statement was made on the subject. Founder and CEO Barry SilbertDCG’s statement to Genesis in a note to shareholders May 2023approx. to be paid in $575 million He declared that he owed:

There has been talk lately about intercompany loans between Genesis Global Capital and DCG. For those unaware, in the ordinary course of business DCG has borrowed money from Genesis Global Capital in the same way as hundreds of crypto investment firms. These loans have always been structured at arm’s length and priced at prevailing market interest rates. DCG currently has approximately $575 million in debt to Genesis Global Capital due in May 2023.

Silbert also offers investors June 2032which will expire in $1.1 billion Recalling a bill, he stated that it was related to debts.

source site-10