This news is still unfolding, and additional details will be provided once they become available.
As per a recent Financial Times news report, crypto trading firm Genesis Global is said to owe its creditors an amount of more than $3 billion.
To make up for the deficit, its parent company Digital Currency Group (DCG), which also owns Grayscale Investments and its set of digital asset trusts, is attempting to sell a portion of its venture capital assets.
According to insiders, DCG’s venture arm is linked to more than 200 crypto-related enterprises, including exchanges, banks, and custodians based in at least 35 countries, with a collective valuation of around $500 million.
Earlier this month, Cointelegraph reported that Genesis Global had frozen withdrawals due to “unprecedented market turbulence.” At the time, the company supposedly had $175 million worth of funds stuck on FTX, and had already obtained a $140 million capital injection to address its losses. This story is still developing, and we will provide more details as they become available.