Financial Times: Genesis Global Capital owes creditors more than $3 billion

Genesis Global Capital’s debt load exceeds $3 billion. As part of capital-raising efforts, the parent group DCG is considering selling assets worth $500 million from its venture investment portfolio, according to the Financial Times, citing informed sources.

The portfolio includes 200 holdings in projects such as Coinbase, Kraken, FTX and Blockchain.com.

According to the publication’s sources, these investments are valued at roughly $500 million, but they are illiquid — it will take time to find a buyer.

Earlier this year, DCG announced the closure of its subsidiary HQ Digital, which specialized in asset management. Genesis Trading cut 30% of its staff.

The firm and Digital Currency Group owed Gemini’s clients $900 million.

Cameron Winklevoss, co-founder of the latter, in another open letter urged Barry Silbert, DCG’s chief, to step down. The public dispute has heightened concerns that Genesis may file for bankruptcy.

In November, the platform did not rule out this scenario in an attempt to raise financing. Such a move sparked concerns about the resilience of the parent DCG and the future of the GBTC — the “cash cow” of Silbert’s empire.

As Bloomberg reported, in January, SEC and the U.S. Department of Justice began examining the nature of the relationship between Digital Currency Group and Genesis Global Capital.

Bernstein floated the possibility of liquidating the Grayscale Bitcoin Trust as a remedy for DCG’s “problem”.

Read ForkLog’s bitcoin news on our Telegram — cryptocurrency news, rates and analytics.