Community Genesis Global specializing in cryptocurrency trading and lending, which is currently facing liquidity problems, is said to have lent approximately $2.8 billion to various crypto companies, including its parent company, Digital Currency Group (DCG) of Barry Silbert.
Outstanding loans on Genesis’ balance sheet also consisted of intra-group loans, such as those made to the crypto trading business Genesis Global Trading. The latter is a key player in the crypto industry, acting as an important counterparty for a significant number of companies.
The information was reported by Bloomberg, with the article citing people “familiar with the matter.”
The article also mentions a letter from the CEO of Digital Currency Group, Barry Silbertto shareholders, where Silbert revealed that DCG owes Genesis $575 million, including a payment due in May 2023.
Separately, a $1.1 billion promissory note owed by Genesis to DCG is expected to mature in June 2032. The loan was reportedly put in place when DCG assumed some of Genesis’ liabilities after the fund collapsed. crypto speculative Three arrows capital at the beginning of July this year.
Media reported at the time that Genesis had exposure to Three Arrows Capital and another struggling crypto lender, BabelFinanceworth “hundreds of millions” of dollars.
Genesis Global Capital suspended redemptions to clients on November 16, sending shockwaves through the industry and markets.
Silbert: “We will emerge stronger from this crisis”
Besides the aforementioned loans, DCG’s only debt is a $350 million credit facility “from a small group of lenders led by [la société de capital-risque] Eldridge“, we can read in Silbert’s letter.
“Let me be crystal clear: DCG will continue to be an industry-leading builder, and we remain committed to our long-term mission to accelerate the development of a better financial system.”
“We’ve weathered previous crypto winters, and while this one may seem more severe, we will collectively emerge stronger,” Silbert’s letter adds, while noting that DCG is on track to generate a respectable $800 million in revenue this year.
Digital Currency Group is a large conglomerate that has made investments in dozens of crypto companies, including top market players such as chain analysis, bitFlyer, BitPay, Blockstream, Ledger, Ripple, Coin base, eToro and the krakento name just a few.
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