https://www.msn.com/en-us/money/companies/digital-currency-group-in-deal-with-bankrupt-unit-genesis-to-end-620-million-suit/ar-AA1kGJA6
"Digital Currency Group struck a new repayment deal with its bankrupt subsidiary, Genesis Global Holdco LLC, as part of an agreement to end a lawsuit that sought roughly $620 million from DCG.
Genesis lawyer Sean O’Neal said during a Tuesday hearing that the deal will provide the bankrupt crypto lender with roughly $200 million in value over the next few weeks and requires DCG to complete outstanding payments in April 2024. If DCG defaults, Genesis can try to collect any unpaid amount, according to court papers.
The proposed agreement is meant to resolve a lawsuit Genesis brought in September to recover outstanding loans from its parent conpany. DCG, which has been making payments to Genesis since the lawsuit was filed, still owes its subsidiary $324.5 million as of Nov. 28, according to court documents. "
Topic: Gemini vs Digital Currency Group (Read 468 times)
https://twitter.com/cameron/status/1676024844641550337
An Open Letter to @BarrySilbert
____
"Gemini Earn users are still "in limbo" as their assets are stuck in DCG-owned Genesis Global, according to a released letter from Gemini CEO Cameron Winklevoss. Winklevoss demanded a total of $1.465 billion from DCG, including a $630 million payment due in May. As part of the updated offer, DCG has until July 21 to pay $275 million."
https://overtonfx.ru/threads/gemini-prigrozila-sudom-osnovatelju-dcg-za-neuplatu-dolga-po-programme-gemini-earn.8044/
____
Barry Silbert’s Digital Currency Group Names Shifke as CFO
DCG says second-quarter revenue totaled $216 million
DCG says it’s close to settling with bankruptcy creditors
https://www.bloomberg.com/news/articles/2023-07-31/barry-silbert-s-digital-currency-group-names-mark-shifke-as-cfo#xj4y7vzkg
___
DCG Reaches Crucial In-Principle Deal With Genesis Creditors, Recoveries Could Be Up to 90%
The plan could result in recoveries of 70% to 90% in USD equ
https://www.coindesk.com/policy/2023/08/29/dcg-reaches-in-principle-deal-with-genesis-creditors-estimates-recoveries-of-70-90/
An Open Letter to @BarrySilbert
____
"Gemini Earn users are still "in limbo" as their assets are stuck in DCG-owned Genesis Global, according to a released letter from Gemini CEO Cameron Winklevoss. Winklevoss demanded a total of $1.465 billion from DCG, including a $630 million payment due in May. As part of the updated offer, DCG has until July 21 to pay $275 million."
https://overtonfx.ru/threads/gemini-prigrozila-sudom-osnovatelju-dcg-za-neuplatu-dolga-po-programme-gemini-earn.8044/
____
Barry Silbert’s Digital Currency Group Names Shifke as CFO
DCG says second-quarter revenue totaled $216 million
DCG says it’s close to settling with bankruptcy creditors
https://www.bloomberg.com/news/articles/2023-07-31/barry-silbert-s-digital-currency-group-names-mark-shifke-as-cfo#xj4y7vzkg
___
DCG Reaches Crucial In-Principle Deal With Genesis Creditors, Recoveries Could Be Up to 90%
The plan could result in recoveries of 70% to 90% in USD equ
https://www.coindesk.com/policy/2023/08/29/dcg-reaches-in-principle-deal-with-genesis-creditors-estimates-recoveries-of-70-90/
https://www.coindesk.com/business/2023/05/22/gemini-says-genesis-parent-dcg-missed-630-million-payment/
"Digital Currency Group (DCG) missed a $630 million payment owed to Genesis last week.
Gemini CEO Cameron Winklevoss has threatened to sue DCG CEO Barry Silbert and DCG over the repayment of a $900 million loan after Genesis, a DCG entity, filed for Chapter 11 bankruptcy, amid allegations of mixed funds and ongoing disputes about loan repayments. The U.S. Securities and Exchange Commission (SEC) has accused both firms of selling unregistered securities through their Earn program."
"Digital Currency Group (DCG) missed a $630 million payment owed to Genesis last week.
Gemini CEO Cameron Winklevoss has threatened to sue DCG CEO Barry Silbert and DCG over the repayment of a $900 million loan after Genesis, a DCG entity, filed for Chapter 11 bankruptcy, amid allegations of mixed funds and ongoing disputes about loan repayments. The U.S. Securities and Exchange Commission (SEC) has accused both firms of selling unregistered securities through their Earn program."
This is going to long and messy. There is so much fraud and so many things intertwined that you have to start to wonder if it would just be easier to take everything from everyplace that was involved and just liquidate it all and give back whatever you get to the people who it's owed to.
The 'take off and nuke it from orbit' theory. Yes, you might get $2 billion more going through everything line by line but if it takes 4 years and $3 billion to do it did you really accomplish anything?
-Dave
Posted someplace else here a while ago:
Followed by my comment of this is about the same:
This is going to long and messy. There is so much fraud and so many things intertwined that you have to start to wonder if it would just be easier to take everything from everyplace that was involved and just liquidate it all and give back whatever you get to the people who it's owed to.
The 'take off and nuke it from orbit' theory. Yes, you might get $2 billion more going through everything line by line but if it takes 4 years and $3 billion to do it did you really accomplish anything?
-Dave
Followed by my comment of this is about the same:
This is going to long and messy. There is so much fraud and so many things intertwined that you have to start to wonder if it would just be easier to take everything from everyplace that was involved and just liquidate it all and give back whatever you get to the people who it's owed to.
The 'take off and nuke it from orbit' theory. Yes, you might get $2 billion more going through everything line by line but if it takes 4 years and $3 billion to do it did you really accomplish anything?
-Dave
Bankrupt crypto exchange FTX wants to claw back nearly $4 billion in funds from similarly bankrupt Genesis Global Capital, the company said in a court filing Wednesday.
Genesis was "largely repaid" the nearly $8 billion in loans made to Alameda Research, an FTX-affiliated entity in the weeks leading up to FTX's bankruptcy in November, the motion said. Genesis is a subsidiary of Digital Currency Group, CoinDesk's parent company. Genesis filed for bankruptcy itself in January.
https://www.coindesk.com/policy/2023/05/03/ftx-seeks-to-claw-back-nearly-4b-in-ongoing-bankruptcy-case/
Genesis was "largely repaid" the nearly $8 billion in loans made to Alameda Research, an FTX-affiliated entity in the weeks leading up to FTX's bankruptcy in November, the motion said. Genesis is a subsidiary of Digital Currency Group, CoinDesk's parent company. Genesis filed for bankruptcy itself in January.
https://www.coindesk.com/policy/2023/05/03/ftx-seeks-to-claw-back-nearly-4b-in-ongoing-bankruptcy-case/
https://decrypt.co/138453/gemini-warns-barry-silbert-digital-currency-group-630m-default-risk
Gemini Warns Barry Silbert's Digital Currency Group of $630M Default Risk
"DCG “risks defaulting on its obligations” if it's unable to pay the $630 million debt made to bankrupt Genesis, said Gemini.
Mediation is underway to resolve the outstanding issues between DCG, Genesis, and Gemini.
Per an update, Gemini, Genesis, and its parent company Digital Currency Group (DCG), as well as creditor committees agreed to initiate “a 30-day mediation process to drive to a final resolution as soon as possible.”"
Gemini Warns Barry Silbert's Digital Currency Group of $630M Default Risk
"DCG “risks defaulting on its obligations” if it's unable to pay the $630 million debt made to bankrupt Genesis, said Gemini.
Mediation is underway to resolve the outstanding issues between DCG, Genesis, and Gemini.
Per an update, Gemini, Genesis, and its parent company Digital Currency Group (DCG), as well as creditor committees agreed to initiate “a 30-day mediation process to drive to a final resolution as soon as possible.”"
https://dailyhodl.com/2023/04/11/fidelity-and-bank-of-america-gain-exposure-to-bitcoin-as-financial-giants-heavily-invest-in-microstrategy/
"Financial titans Fidelity and Bank of America are now indirect owners of Bitcoin (BTC) after the two firms heavily accumulated shares of MicroStrategy (MSTR) in Q1 this year.
MicroStrategy is the largest institutional holder of Bitcoin, owning 140,000 BTC worth more than $4.22 billion.
Data from CNN shows that Bank of America is now the fourth-largest shareholder of MicroStrategy after the bank bought tens of millions of dollars worth of MSTR in Q1 of 2023"
"Financial titans Fidelity and Bank of America are now indirect owners of Bitcoin (BTC) after the two firms heavily accumulated shares of MicroStrategy (MSTR) in Q1 this year.
MicroStrategy is the largest institutional holder of Bitcoin, owning 140,000 BTC worth more than $4.22 billion.
Data from CNN shows that Bank of America is now the fourth-largest shareholder of MicroStrategy after the bank bought tens of millions of dollars worth of MSTR in Q1 of 2023"
FTX Debtors File Lawsuit Against Grayscale Investments, LLC and its CEO and Owners
FTX Debtors Demand Injunctive Relief to Allow Redemptions and Reduce Fees in Grayscale Trusts
Grayscale and its Controllers Continue to Breach Trust Agreements and Fiduciary Duties
Grayscale's Self-Imposed Redemption Ban Prevents Realization of Approximately $9 Billion of Value
https://www.prnewswire.com/news-releases/ftx-debtors-file-lawsuit-against-grayscale-investments-llc-and-its-ceo-and-owners-301763694.html
FTX Debtors Demand Injunctive Relief to Allow Redemptions and Reduce Fees in Grayscale Trusts
Grayscale and its Controllers Continue to Breach Trust Agreements and Fiduciary Duties
Grayscale's Self-Imposed Redemption Ban Prevents Realization of Approximately $9 Billion of Value
https://www.prnewswire.com/news-releases/ftx-debtors-file-lawsuit-against-grayscale-investments-llc-and-its-ceo-and-owners-301763694.html
https://www.coindesk.com/markets/2023/03/06/gbtc-discount-narrows-to-42-ahead-of-grayscales-etf-hearing-tuesday/
GBTC Discount Narrows to 42% Ahead of Grayscale’s ETF Hearing Tuesday
"The closed-end fund's discount to net asset value had widened to 47% in mid-February.
The Grayscale Bitcoin Trust (GBTC) discount to net asset value has fallen to its lowest level in a month ahead of oral arguments in federal court on Tuesday related to Grayscale's lawsuit against the U.S. Securities and Exchange Commission."
GBTC Discount Narrows to 42% Ahead of Grayscale’s ETF Hearing Tuesday
"The closed-end fund's discount to net asset value had widened to 47% in mid-February.
The Grayscale Bitcoin Trust (GBTC) discount to net asset value has fallen to its lowest level in a month ahead of oral arguments in federal court on Tuesday related to Grayscale's lawsuit against the U.S. Securities and Exchange Commission."
https://www.ft.com/content/abee7e2e-1d18-4a68-aac5-665869db250f
DCG sells shares in Grayscale crypto trusts in push to raise funds
"Digital assets conglomerate sells down holdings in prized investments at a discount to pay creditors
Crypto conglomerate Digital Currency Group has begun to sell shares in several of its most prized cryptocurrency funds at a steep discount, as it seeks to raise capital to pay back creditors of its bankrupt lending arm.
SoftBank-backed DCG has started to offload its holdings in several investment vehicles run by its subsidiary Grayscale, according to US securities filings seen by the Financial Times."
DCG sells shares in Grayscale crypto trusts in push to raise funds
"Digital assets conglomerate sells down holdings in prized investments at a discount to pay creditors
Crypto conglomerate Digital Currency Group has begun to sell shares in several of its most prized cryptocurrency funds at a steep discount, as it seeks to raise capital to pay back creditors of its bankrupt lending arm.
SoftBank-backed DCG has started to offload its holdings in several investment vehicles run by its subsidiary Grayscale, according to US securities filings seen by the Financial Times."
London-based crypto exchange Luno informed employees of the redundancies at 12 p.m. GMT on Wednesday in a live-streamed town hall.
Luno has a total headcount of roughly 960, according to its LinkedIn profile, meaning that more than 330 jobs will be impacted.
The company, which has offices in Africa, southeast Asia and Europe, is part of the Digital Currency Group crypto conglomerate.
TECH DCG-owned crypto exchange Luno axes 35% of staff, citing market turbulence
Luno has a total headcount of roughly 960, according to its LinkedIn profile, meaning that more than 330 jobs will be impacted.
The company, which has offices in Africa, southeast Asia and Europe, is part of the Digital Currency Group crypto conglomerate.
TECH DCG-owned crypto exchange Luno axes 35% of staff, citing market turbulence
https://www.coindesk.com/business/2023/01/20/genesis-claims-51b-in-liabilities-in-first-day-bankruptcy-filing/
Genesis Claims $5.1B in Liabilities in First-Day Bankruptcy Filing
Three of the institutional crypto brokerage's entities filed for Chapter 11 protection late Thursday.
Crypto lending firm Genesis held $5.1 billion in liabilities in the weeks following its freeze on withdrawals last November, according to bankruptcy court documents signed by interim CEO Derar Islim.
Genesis Claims $5.1B in Liabilities in First-Day Bankruptcy Filing
Three of the institutional crypto brokerage's entities filed for Chapter 11 protection late Thursday.
Crypto lending firm Genesis held $5.1 billion in liabilities in the weeks following its freeze on withdrawals last November, according to bankruptcy court documents signed by interim CEO Derar Islim.
Discuss in-depth: Genesis files for bankruptcy reorganization, Will DCG crash? What is the impact on industry?
https://wublock.substack.com/p/discuss-in-depth-genesis-files-for
https://wublock.substack.com/p/discuss-in-depth-genesis-files-for
GEMINI is in trouble now because they have used up 900 million of their clients' funds. It is very difficult for me to understand American financial legislation, but I am interested in what the consequences of this bankruptcy will be for a large American stock exchange.
___
https://twitter.com/lookonchain/status/1616428210929168385
"Before Genesis Global filed for bankruptcy protection, the Genesis Trading OTC address transferred:
- 50,000 $ETH($77.6M) #Coinbase;
- 20,000 $ETH($31M) to #Bitstamp;
- 5,000 $ETH($7.76M) and 3.9M $USDT to #Kraken;
- 7.7M $FTM ($2.35M) to #Binance;
- 36M $USDC to new address."
___
https://twitter.com/lookonchain/status/1616428210929168385
"Before Genesis Global filed for bankruptcy protection, the Genesis Trading OTC address transferred:
- 50,000 $ETH($77.6M) #Coinbase;
- 20,000 $ETH($31M) to #Bitstamp;
- 5,000 $ETH($7.76M) and 3.9M $USDT to #Kraken;
- 7.7M $FTM ($2.35M) to #Binance;
- 36M $USDC to new address."
https://www.coindesk.com/business/2023/01/17/crypto-conglomerate-dcg-suspends-dividends-amid-distress-at-genesis-unit/
Crypto Conglomerate DCG Suspends Dividends Amid Distress at Genesis Unit
"In response to the current market environment, DCG has been focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity," it told shareholders in a letter Tuesday.
Crypto Conglomerate DCG Suspends Dividends Amid Distress at Genesis Unit
"In response to the current market environment, DCG has been focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity," it told shareholders in a letter Tuesday.
Ok, now that rings alarm bells in my head. There's no good reason for any company to stop paying dividends, unless they are running out of cash (or they're just asshats in the case of Amazon) which seems like what the entire DCG is going through right now.
I'm just waiting for the ironic article to be written on CoinDesk: "DCG declares bankruptcy".
Yes and no. They might be worried about another major downturn and want to have cash on hand to ride it out.
NOT saying that this is what is happening here, but more and more you see businesses hoarding more and more cash *just in case*.
There were a lot of viable business out there that could not survive the 2008 market crash and others that went out during Covid. There were profitable and doing well, but needed that cash to keep flowing. Without that they just did not have the liquidity to keep it going. So now they hoard. There are a bunch of downsides to doing that too.
Once again, not saying that is what is happening here, just that it does happen.
-Dave
https://www.coindesk.com/business/2023/01/17/crypto-conglomerate-dcg-suspends-dividends-amid-distress-at-genesis-unit/
Crypto Conglomerate DCG Suspends Dividends Amid Distress at Genesis Unit
"In response to the current market environment, DCG has been focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity," it told shareholders in a letter Tuesday.
Crypto Conglomerate DCG Suspends Dividends Amid Distress at Genesis Unit
"In response to the current market environment, DCG has been focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity," it told shareholders in a letter Tuesday.
Ok, now that rings alarm bells in my head. There's no good reason for any company to stop paying dividends, unless they are running out of cash (or they're just asshats in the case of Amazon) which seems like what the entire DCG is going through right now.
I'm just waiting for the ironic article to be written on CoinDesk: "DCG declares bankruptcy".
Grayscale is one of the greatest scams of 2022. His clients do not own the cryptocurrency, the clients own the shares of this company, which has 30 billion.
Grayscale is an ETF. So what else did you expect? An ETF of a bunch of stocks does not mean you are an investor in the companies represented by those stocks - the people managing the ETF are. Same goes for cryptocurrency.
So far, it has pacified a lot of investors who otherwise would've ran away from Bitcoin as if it was some plague.
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https://www.coindesk.com/business/2023/01/17/crypto-conglomerate-dcg-suspends-dividends-amid-distress-at-genesis-unit/
Crypto Conglomerate DCG Suspends Dividends Amid Distress at Genesis Unit
"In response to the current market environment, DCG has been focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity," it told shareholders in a letter Tuesday.
Grayscale is one of the greatest scams of 2022. His clients do not own the cryptocurrency, the clients own the shares of this company, which has 30 billion.
Grayscale is an ETF. So what else did you expect? An ETF of a bunch of stocks does not mean you are an investor in the companies represented by those stocks - the people managing the ETF are. Same goes for cryptocurrency.
So far, it has pacified a lot of investors who otherwise would've ran away from Bitcoin as if it was some plague.
Genesis is laying the groundwork for a bankruptcy filing as soon as this week. The company is working toward a restructuring plan and had swapped proposals with its creditors, some of whom had suggested receiving a mix of cash and equity from DCG.
https://twitter.com/WuBlockchain/status/1615879804393508864?
bloomberg
https://twitter.com/WuBlockchain/status/1615879804393508864?
bloomberg
Might not be the worst outcome. Given enough time and effort they might be able to make enough money to cover the losses and pay everyone back.
Also, might be able to work on better negotiations with the people they owe. i.e. we give you 75% now and you walk or we can try to pay you back but we can't guaranty how much of it or any particular time frame.
Enough people might take the buyout that it gives them even more time and money to get things done.
I have see things like this work in other financial things and see it implode impressively. Lets see how this one turns out.
-Dave
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