Chinese cryptocurrency Entrepreneur Justin Sun told Reuters that he is willing to spend $1 billion from his own funds to buy assets owned by Digital Currency Group (DCG), the parent company of embattled crypto lender Genesis.
Genesis had frozen customer withdrawals in November and said it was trying to avoid filing for bankruptcy. According to a person familiar with the matter, the company owes its creditors more than $3 billion.
Genesis owner DCG is also the parent of several major crypto firms, including crypto asset manager Grayscale, and the company’s website lists more than 160 companies in its venture capital portfolio. DCG is considering divesting some of this portfolio to raise money, the Financial Times reported on Thursday.
“We Could Spend Up To $1 Billion On DCG Assets Depending On The Situation”
In an interview with Reuters, Sun said he would be willing to spend up to $1 billion to buy some of DCG’s assets “depending on their assessment of the situation.”
Sun did not specify which assets it intends to acquire.
Sun’s spokesperson did not disclose the details of Sun’s wealth, but said it consists of crypto and fiat currencies.
Sun is the founder of the blockchain network TRON and is a consultant to crypto exchange Huobi, which announced last week that it plans to lay off about 20% of its staff.
Prominent cryptocurrency personalities have made clear in the past that they are interested in acquiring other firms or their assets when there are market concerns about the financial health of some firms, but such deals are not necessarily going to happen.
In November, when famed crypto exchange FTX faced rapid withdrawals from investors, Binance announced that it had signed a non-binding agreement to acquire the non-US portion of FTX. A day later, Binance said it had canceled the plan after due diligence.
*Not investment advice.
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