According to Bloomberg’s news, citing people familiar with the matter, the troubled brokerage firm Genesis Global has $2.8 billion in outstanding loans on its balance sheet, and about 30% of these loans were given to related parties, including its parent company Barry Silbert’s Digital Currency Group. case.
Genesis Revealed That It Hired Bankruptcy Advisor After DCG CEO Announced “Everything’s Fine”
Among them, a credit subsidiary called Genesis Global Capital was lending money to brokerage unit Genesis Global Trading, which has become a key counterparty for institutions in the crypto industry. In a letter to shareholders on Tuesday, Silbert said intercompany loans were made “in the ordinary course of business”.
Silbert noted that DCG has a liability of $575 million to Genesis.
The letter also disclosed a $1.1 billion promissory note due June 2032, which the parent company said came about when the bankruptcy of digital assets hedge fund Three Arrows Capital stepped in to take on Genesis’ obligations related to it.
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In the shareholder letter, DCG’s only debt, excluding intercompany loans and bonds due in May 2023, is a $350 million loan “from a small group of lenders led by Eldridge.”
As we have previously reported, Silbert used the following statements in his letter to his shareholders:
“Let me make it clear: DCG will continue to be one of the industry’s leading founders and we are committed to our long-term mission to accelerate the development of a better financial system. Before cryptocurrency We’ve survived the winter, and while it may feel more severe, we’ll all come out of this stronger together.”
He added that DCG has raised only $25 million in primary capital and is on track to generate $800 million in revenue this year.
*Not investment advice.