- DCG is selling Grayscale shares to raise funds amid financial difficulties.
- Genesis owes its creditors at least $3.4 billion after bankruptcy filings.
- There will also be a mechanism for Earn users to get their money back.
According to a report published by the Financial Times on Tuesday, Digital Currency Group (DCG) is reportedly selling shares in several of its cryptocurrency funds at a significant discount, and the company has also reportedly begun unloading its holdings in investment vehicles run by a subsidiary Grayscale.
Genesis, a lending branch of DCG that is sponsored by SoftBank, filed for bankruptcy protection. Genesis owes its creditors at least $3.4 billion after being taken down by a market collapse together with exchange FTX and lender BlockFi.
The publication said that a fifth of DCG’s equity in its Ethereum fund was sold, generating as much as $22 million in multiple sales since January 24. They cited U.S. securities filings that they had seen as their source for this information.
According to the article, DCG has also taken steps to sell smaller blocks of shares in its Litecoin Trust, Bitcoin Cash Trust, Ethereum Classic Trust, and Digital Large Cap Fund.
In another update, there will be a mechanism for Earn users to get their money back, as per an agreement in principle between Gemini and creditors Genesis Global Capital, LLC (Genesis), Digital Currency Group, Inc. (DCG), and others.
The details of this agreement were made public by the Bankruptcy Court on January 6th.
This plan is supposedly the next step toward a significant asset recovery for all of Genesis’s creditors. As part of the strategy, Gemini will provide Earn members up to an extra $100 million, demonstrating the company’s unwavering dedication to helping its clients make a full recovery.
