• Genesis, a crypto lender, owes its creditors over $3 billion.
• Digital Currency Group, Genesis‘ parent company, is looking to sell its venture-capital portfolio, worth around $500 million, to pay off the debt.
• Tensions between DCG and Genesis creditors have been running high, with Cameron Winklevoss of Gemini calling for DCG CEO Barry Silbert’s ouster.
Crypto lender Genesis is in a tough spot. According to the Financial Times, the company owes its creditors over $3 billion, prompting its parent company, Digital Currency Group, to consider selling some of its venture-capital portfolio, worth around $500 million, in order to pay off the debt.
The situation has resulted in tensions between DCG and Genesis creditors, with Gemini co-founder Cameron Winklevoss even calling for DCG CEO Barry Silbert’s ouster earlier this week. DCG owns a portfolio of crypto exchanges like Coinbase (COIN), Kraken and Blockchain.com, as well as the now bankrupt FTX.
The assets owned by DCG are illiquid, however, meaning it will take some time to sell them off. This situation has caused a great deal of worry among creditors, some of whom have been vocal about their displeasure with the current state of affairs.
DCG has yet to make any definitive statements on the matter, declining to comment when asked by the Financial Times. However, the company is reportedly looking at asset sales in order to raise the necessary capital to pay off Genesis‘ debt.
In the meantime, the situation is still uncertain. It remains to be seen how DCG will address the mounting debt, and whether the venture-capital portfolio will be sold off in order to do so. Until then, creditors will have to remain in the dark, hoping for the best.