Cryptocurrency lender Genesis suspended payments on November 16, citing an extreme market situation. The payment has not been recovered since then, and the lender owes customers more than $3 billion. Interesting developments are taking place around the Digital Currency Group (DCG), which owns the company. According to the latest reports, the founder of Tron, the famous-notorious Chinese crypto, Justin Sun, wants to acquire the entire network for 1 billion dollars.
Sun may be talking to the air, but Genesis is in trouble, that’s a fact
One, for Archyde.com in his interview Sun said the offer was alive, but DCG would decide whether to accept it. Of course, questions arise. After all, DCG is estimated to be a $50 billion asset manager, while Sun’s assets, including traditional and crypto assets, cannot be more than $3 billion. And we have already seen that the entrepreneur also appeared in connection with the bankrupt crypto exchange FTX with the intention of saving that company as well. He also pledged to support the Industry Recovery Fund launched by Binance. Of course, the question is once more from what. Either way, DCG has yet to say anything regarding the new offering, but the fact is that the company is trying to save what can be saved.
30% of Genesis’ employees will be laid off and DCG has started selling its assets. According to the news, Genesis’ 3 billion dollar debt will be covered by the parent company by selling roughly the same amount of its own assets. Barry Silbert, head of DCG, has already tried several times to increase the distance between DCG and Genesis, with little success. At the beginning of 2023, the Winklevoss twins, who founded the Gemini group of companies, known in the crypto sector, demanded that Genesis immediately repay the debt of 900 million dollars owed to Gemini Earn. Since this did not happen, they began to demand Silbert’s resignation as well. Finally, at the beginning of January, Gemini Earn pulled down the curtain for good.
In any case, Silbert does not rule out any option. It also came to light that bankruptcy is being discussed with consultants, while the capital raising project launched to save Genesis failed. The question is, what will they do now with Sun’s offer and in general – is Sun’s offer really real, or is he just trying to keep his name on the surface?
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