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Nick Baker
Nick Baker is CoinDesk's deputy editor-in-chief. It has little quantities of btc and eth.
Barry Silbert, the head of crypto conglomerate Digital Currency Group (DCG), gave his shareholders more details about his company's Genesis Capital lending division that was forced to halt customer withdrawals in the aftermath of FTX's November collapse.
Writing in a letter to investors, Silbert (whose firm owns crypto trading firm Genesis, asset manager Grayscale, CoinDesk and other companies) said that "this past year has been the most difficult of my life – both personally and professionally. The evil actors and repeated explosions have wreaked havoc on our industry, with far-reaching repercussions."
I’ve been reflecting quite a bit about the past year, the state of the industry and where things go from here.
Here is an update to address those reflections, other developments and some speculation about @DCGco (1/10)https://t.co/xEohthubvD
— Barry Silbert (@BarrySilbert) January 10, 2023
He noted DCG has cut jobs and is winding down its crypto asset manager HQ.
He noted that DCG has eliminated jobs and is in the process of liquidating its crypto asset management HQ. Genesis's loan arm shut down withdrawals last November, who blocked investor-owned funds in the gemini earnings proceeds, letting Gemini go to great lengths to find a way to return the money to his clients.
Gemini raised the temperature in the fight this week, calling for Silbert to step down as CEO of DCG and officially canceling the Gemini Earn program. Gemini raised questions about how money moves between genesis and dcg.
In his letter of Tuesday, Silbert said dcg borrowed seed capital. In her Tuesday newsletter, Silbert said the DCG took out a loan from Genesis Capital, but "these loans were always structured on an arm's length basis and were priced at prevailing market interest rates." silbert said dcg has a $1.1 billion promissory note maturing in 2032 with genesis capital, which resulted from the assumption of the insolvency claim of its subsidiary against the speculative crypto fund three capital arrows.
Silbert reported that DCG has a promissory note of 1.1 billion dollars maturing in 2032 with Genesis Capital, resulting from DCG's bankruptcy of its subsidiary against Three Arrows Capital, a crypto hedge fund.
