• Digital Currency Group’s (DCG) Genesis Global Trading is in a dispute with Gemini, their partner on a crypto lending product pitched to smaller investors.
• DCG is reportedly looking to sell some of its venture-capital portfolio, worth around $500 million, to pay off the $3 billion debt owed to creditors by Genesis.
• Lumida CEO and co-founder Ram Ahluwalia has weighed in on the ongoing tensions between DCG and Gemini.
Trouble seems to be brewing for crypto lender Genesis as it reportedly owes its creditors more than $3 billion. To pay off this debt, the Financial Times reported on Thursday that Digital Currency Group (DCG), Genesis’ parent company, is looking at selling some of its venture-capital portfolio, worth around $500 million. The news comes as tensions are escalating between DCG and Gemini, its partner on a crypto lending product pitched to smaller investors.
Gemini, the crypto exchange founded by the Winklevoss twins, escalated the dispute by terminating a key aspect of their relationship. Lumida CEO and co-founder Ram Ahluwalia has weighed in on the ongoing tensions between DCG and Gemini, emphasizing the need for both parties to come to an agreement.
The news of Genesis’ financial troubles is the latest in a string of issues the company has faced in recent times. In late December, Genesis was forced to suspend all new credit and margin loans after a “previously undetected coding error” resulted in the exposure of customer data. It was also reported that the firm had been taking excessive collateral from some of its customers.
The news of DCG looking to sell some of its venture-capital portfolio to pay off Genesis’ debt is likely to have a significant impact on the crypto market. The sale of such a large portfolio of assets could cause a significant drop in the value of cryptocurrencies, as investors will be forced to liquidate their holdings.
It is yet to be seen how the dispute between DCG and Gemini will be resolved. The two companies have been working together on a crypto lending product pitched to smaller investors, and it is unclear whether the product will be able to continue without Gemini’s involvement. Meanwhile, Genesis’ creditors are likely to be eager for a resolution to be reached quickly, in order to recover their funds.
The crypto industry has been under increasing scrutiny in recent months, with governments and regulators around the world introducing a range of new restrictions and regulations. In light of this, the news of Genesis’ debt and the potential sale of DCG’s venture-capital portfolio is likely to add to the already tense atmosphere in the crypto world. Despite this, some experts remain optimistic and believe that the industry will be able to recover from the current crisis.