Digital Forex Group, the guardian firm of each Genesis and Grayscale, launched a press release on Jan. 20 commenting on the information that Genesis had filed for Chapter 11 chapter.
Following the assertion’s launch, Bitcoin climbed above $21,000 to a year-to-date excessive of $21,912.
The destiny of DCG has been assessed as a major potential catalyst for additional draw back to the present crypto bear market. Nonetheless, it seems that DCG’s assertion has alleviated fears of an impending Bitcoin crash as a consequence of DCG doubtlessly liquidating belongings.
DCG confirmed that there’s a clear separation between DCG and Genesis.
“Genesis has its personal impartial administration workforce, authorized counsel, and monetary advisors, and appointed a particular committee of impartial administrators, who’re answerable for the Genesis Capital restructuring.”
Additional, DCG determined to file for Chapter 11 on the appointed impartial administrators of Genesis whereas confirming that no DCG workers had any involvement within the choice.
As well as, assurance was on condition that DCG and its firms will “proceed to function enterprise as ordinary.” These firms embody Grayscale Investments, the trustee of the Grayscale Bitcoin Belief, and Genesis’s spot and derivatives buying and selling companies. Solely the lending arm of Genesis has filed for chapter presently.
DCG confirmed the disclosure of a $526 million debt to Genesis Capital in Might 2023, together with a $1.1 billion promissory word due in June 2032.
The assertion contained a Q&A piece that postulated that DCG had no obligation to tackle the $1.1 billion promissory word owed to Genesis. The cash was allegedly a part of an unsecured mortgage to Three Arrows Capital (3AC). DCG took duty for the mortgage to assist Genesis however by no means acquired any funds. 3AC collapsed throughout the Luna crash in Might 2022, inflicting contagion throughout the business.
$340 million was reportedly distributed all through the Genesis group by DCG as further assist after the 3AC collapse.
DCG additionally answered a loaded query “What’s DCG’s response to Gemini’s false accusations associated to the Gemini Earn program and risk of a lawsuit?” Ignoring the obvious language bias, DCG once more took the chance to explain the fees as “one other publicity stunt from Cameron Winklevoss to deflect blame from himself and Gemini.”
The entire assertion may be learn beneath or by way of the dcgupdate.com web site:
DCG’s response to Genesis’s chapter