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☆ Investor group nears $125 million deal for CoinDesk, Wall Street Journal reports
▼ + stars: | 2023-07-20 | by ( ) www.reuters.com time to read: +1 min

July 20 (Reuters) - A group led by blockchain investors Matthew Roszak and Peter Vessenes are nearing a $125 million deal for cryptocurrency-focused media firm CoinDesk, the Wall Street Journal reported on Thursday, citing people familiar with the matter. CoinDesk is currently owned by crypto conglomerate Digital Currency Group (DCG), which bought it in 2016. Any sale would likely bolster DCG's financial strength as the company looks to pull its Genesis unit out of bankruptcy. CoinDesk, Roszak's investment firm Tally Capital and Vessenes's family office did not immediately respond to Reuters requests for comment. Reporting by Niket Nishant in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

Persons: Matthew Roszak, Peter Vessenes, DCG, Niket, Devika Organizations: cryptocurrency, Wall Street, Digital Currency Group, Gemini, Tally Capital, Thomson Locations: Bengaluru

☆ Winklevoss twins take strike two with crypto hype
▼ + stars: | 2023-07-11 | by ( Anita Ramaswamy | ) www.reuters.com time to read: +3 min

The Winklevii, as they came to be known after “The Social Network” movie debuted, are suing another former friend – crypto baron Barry Silbert. That indicates some investors still believe in crypto even if they’ve lost faith in its former stars. Much like social media, the Winklevii seem to be on the losing end of the crypto streak, too. Follow @AnitaRamaswamy on TwitterCONTEXT NEWSOn July 7, cryptocurrency exchange Gemini sued Digital Currency Group, the parent company of now-bankrupt crypto lender Genesis, seeking over $1.1 billion. Gemini co-founder Cameron Winklevoss claimed in a July 7 Twitter post that DCG and Silbert were partially responsible for losses affecting thousands of Gemini users.

Persons: Tyler, Cameron Winklevoss, Mark Zuckerberg, Barry Silbert, Silbert, DCG, they’ve, Lauren Silva Laughlin, Sharon Lam Organizations: YORK, Reuters, Facebook, Social Network, Digital Currency Group, Gemini, Wall Street, Fidelity, Twitter, Genesis’s, Thomson Locations: bitcoin, BlackRock, U.S

July 7 (Reuters) - Cryptocurrency firm Gemini, the largest creditor of bankrupt crypto lending firm Genesis, sued Digital Currency Group (DCG) and its CEO on Friday after a dispute over a restructuring deal for the venture capital firm's troubled unit. DCG and Gemini, the two most prominent players in the crypto industry, have clashed several times over the past few months following the collapse of Genesis, which had filed for bankruptcy in January. Gemini has accused DCG and CEO Barry Silbert of "fraud" and "deception." The dispute came to a head earlier this week after Gemini set a deadline to come to terms on a restructuring agreement by Thursday afternoon, failing which it would pursue litigation. Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel and Shinjini GanguliOur Standards: The Thomson Reuters Trust Principles.

Persons: Gemini, DCG, Barry Silbert, Genesis, Niket, Maju Samuel, Shinjini Organizations: Digital Currency Group, Thomson Locations: Bengaluru

The lending unit of crypto firm Genesis filed for bankruptcy in January after the collapse of key counterparties including FTX caused it to freeze customer redemptions in November. Its largest creditor is Gemini, founded by billionaire identical twins Cameron and Tyler Winklevoss who are also former U.S. Olympic rowers. A bankruptcy court appointed a mediator in April to help Genesis, DCG and its creditors agree on a restructuring plan, but the parties have yet to reach a deal despite several extensions. Under the offer, DCG would retain the proceeds from the sale of Genesis' lending unit. If Silbert and DCG do not agree, Gemini will sue Silbert and DCG, and file a motion to place DCG in default and demand immediate debt repayments, Winklevoss said.

Persons: Cameron, Tyler Winklevoss, Gemini, Barry Silbert, Cameron Winklevoss, Winklevoss, DCG, Mark Zuckerberg, Silbert, ” Winklevoss, Hannah Lang, Dietrich Knauth, Michelle Price, Matthew Lewis Organizations: Digital Currency Group, Gemini, U.S, Olympic, Reuters, Genesis, Meta, Facebook, Thomson Locations: Connecticut, Washington

Gemini Trust Co's request was filed in Manhattan federal court, in response to the SEC's Jan. 12 civil lawsuit against the exchange and the cryptocurrency lender Genesis Global Capital LLC, a unit of Digital Currency Group. The SEC had sued over Gemini Earn, which let customers lend crypto assets such as bitcoin to Genesis, with Gemini taking an agent fee as high as 4.29%. The SEC said Genesis held $900 million of assets from about 340,000 Gemini Earn customers. Gemini and Genesis were accused by the regulator of having bypassed disclosure requirements meant to protect investors. The case is SEC v Gemini Trust Co et al, U.S. District Court, Southern District of New York, No.

☆ Crypto exchange owned by embattled conglomerate Digital Currency Group loses top global exec
▼ + stars: | 2023-05-02 | by ( Ryan Browne | ) www.cnbc.com time to read: +3 min

DCG, Luno's parent company, has been grappling with the ongoing fallout from last year's plunge in token prices and the collapse of FTX. Vijay Ayyar, a senior executive at cryptocurrency exchange Luno and one of its earliest employees, is leaving the company. It comes after the company, which is owned by Digital Currency Group, announced the closure of its operation in Singapore, where Ayyar is based. "I'll be leaving Luno after 7 years at the company," Ayyar said in a WhatsApp message. In addition to his corporate responsibilities at Luno, Ayyar also serves as something of a crypto market guru, providing frequent commentary to the press on moves in markets.

☆ DCG-owned crypto exchange Luno replaces CEO, seeks outside investment after layoffs
▼ + stars: | 2023-03-22 | by ( Ryan Browne | ) www.cnbc.com time to read: +4 min

DCG, Luno's parent company, has been grappling with the ongoing fallout from last year's plunge in token prices and the collapse of FTX. LONDON — The CEO of cryptocurrency exchange Luno is stepping aside and handing the reins to its head of operations, the company announced Wednesday. It comes as Luno's parent company, crypto-focused venture capital firm Digital Currency Group, continues to reel from turmoil in the crypto market. Luno said it has also hired investment banking firm Canaccord Genuity Group to help it raise new investment from outside investors. A DCG spokesperson insisted Swanepoel's job move was unrelated to the difficulties faced by Luno's parent company and had been in the works for 12 months.

☆ Crypto group DCG seeks new partners for portfolio firms amid SVB collapse - CoinDesk
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +1 min

March 14 (Reuters) - Crypto conglomerate Digital Currency Group (DCG) is looking to find new banking partners for portfolio companies following the collapse of Silicon Valley Bank (SIVB.O), Signature Bank (SBNY.O) and Silvergate (SI.N), CoinDesk reported on Tuesday, citing messages viewed by the outlet. Santander (SAN.MC), HSBC (HSBA.L) and Deutsche Bank (DBKGn.DE) are still willing to connect with crypto firms, CoinDesk said, after recent banking failures in the United States left crypto firms and tech startups stranded and hunting for new banking partners. DCG has also reached out to BlackRock (BLK.N), JPMorgan (JPM.N) and Bank of America (BAC.N), the report added. Banks may restrict some services for crypto firms, such as brokerage and money market services and the ability to wire money to third parties, according to the messages seen by CoinDesk. Traditional banks may set up banking accounts for crypto firms, but would place restrictions based on the level of crypto exposure, the report added.

☆ Crypto group DCG looking for new partners following SVB collapse - CoinDesk
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

Companies Grayscale Investments LLC FollowMarch 6 (Reuters) - FTX said on Monday its affiliate Alameda Research had sued asset manager Grayscale Investments for imposing a "redemption ban" that "could realize over a quarter billion dollars" of asset value for the bankrupt cryptocurrency exchange's customers. If Grayscale had reduced its fees and did not implement redemption prevention measures, which the cryptocurrency exchange alleges are improper, FTX's shares would be worth nearly 90% more than the current value of those locked up with the asset manager, FTX said. FTX also accused Grayscale owner Digital Currency Group of breaching trust agreements and fiduciary duties. Reporting by Niket Nishant in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ Crypto firm Polygon Labs cuts 100 positions as rout worsens
▼ + stars: | 2023-02-21 | by ( ) www.reuters.com time to read: +1 min

Feb 21 (Reuters) - Polygon Labs said on Tuesday it has laid off 100 employees, or nearly 20% of its positions, after it combined multiple business units earlier this year, making it the latest digital asset company to execute job cuts. The decentralised platform that makes digital coin Ethereum more accessible was founded in 2017 as Matic and was rebranded to Polygon in Feb 2021. The crash led to high-profile bankruptcies of key industry players such as crypto hedge fund Three Arrows Capital and Celsius Network. Its swift fall has sparked tough global regulatory scrutiny of how crypto firms hold funds and conduct business operations. read moreReporting by Mehnaz Yasmin in Bengaluru; Editing by Shailesh Kuber and Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

☆ DCG sells shares in Grayscale crypto trusts in push to raise funds - FT
▼ + stars: | 2023-02-08 | by ( ) www.reuters.com time to read: +1 min

[1/2] Representations of the Ripple, Bitcoin, Etherum and Litecoin virtual currencies are seen on a PC motherboard in this illustration picture, February 14, 2018. The reported move comes as DCG is trying to raise funds to support its collapsed lending units under Genesis. DCG has also moved to sell smaller blocks of shares in its Litecoin Trust, Bitcoin Cash Trust, Ethereum Classic Trust and Digital Large Cap Fund, the report added. DCG and Grayscale did not immediately respond to Reuters request for comment. DCG, owned by Barry Silbert, owns a portfolio of crypto companies in addition to Genesis, including crypto news and events site CoinDesk and New York-based Grayscale, a major digital asset manager.

☆ DCG sells shares in Grayscale as it seeks to raise funds - FT
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +1 min

Feb 7 (Reuters) - Digital Currency Group (DCG) is selling shares in several of its cryptocurrency funds at a high discount, and has started offloading its holdings in investment vehicles run by subsidiary Grayscale, the Financial Times reported on Tuesday. The reported move comes as DCG is trying to raise funds to support its collapsed lending units under Genesis. DCG has also moved to sell smaller blocks of shares in its Litecoin Trust, Bitcoin Cash Trust, Ethereum Classic Trust and Digital Large Cap Fund, the report added. DCG and Grayscale did not immediately respond to Reuters request for comment. Reporting by Sneha Bhowmik and Akriti Sharma in Bengaluru; editing by Eileen SorengOur Standards: The Thomson Reuters Trust Principles.

☆ Digital Currency Group is reportedly selling shares from its most prized crypto funds at a steep discount as the digital asset giant navigates financial woes
▼ + stars: | 2023-02-07 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +2 min

The news comes as the crypto conglomerate's lending unit, Genesis, filed for bankruptcy protection last month. The company told Insider that offloading assets "is simply part of our ongoing portfolio rebalancing." Grayscale operates a bitcoin trust and an ethereum trust charging shareholders 2% and 2.5% in fees a year, respectively. Shareholders have cumulatively paid roughly $1.2 billion for its bitcoin trust and $387 million for its ether trust since 2017, per Morningstar Research. The firm is reportedly selling shares around $8, despite each share's claim to $16 worth of ethereum.

☆ Genesis and parent DCG reach initial deal with main creditors - CoinDesk
▼ + stars: | 2023-02-06 | by ( ) www.reuters.com time to read: +1 min

Feb 6 (Reuters) - Digital Currency Group (DCG) and its bankrupt Genesis unit reached an agreement in principle on a restructuring plan with a group of creditors, CoinDesk reported on Monday, citing a person familiar with the matter. The agreement involves winding down the Genesis loan book and selling bankrupt Genesis entities, the report added. Reuters reported last month that Genesis owes creditors more than $3 billion. Genesis and DCG did not immediately respond to Reuters' requests for comment. DCG acquired crypto news website CoinDesk in 2016 after previously investing in the outlet.

The restructuring deal and recovery plan were announced during a status conference for crypto lender Genesis, which filed for bankruptcy protection in New York on Jan. 19. The deal, cut between Genesis, DCG, Gemini, and Genesis' range of creditors, is largely predicated around a refinancing of Genesis' loans to DCG. DCG will also contribute to Genesis "all equity" in Genesis' trading subsidiary, which remained operational during the bankruptcy. As part of the recovery plan, that promissory note will be equitized, meaning it will be converted into something of substantive value, typically equity, CoinDesk reported. When Genesis halted its lending business following the collapse of FTX in November, Gemini Earn was forced to temporarily shutter its operations, as well.

☆ Britain sets out plans to regulate crypto industry in wake of FTX collapse
▼ + stars: | 2023-02-01 | by ( Ryan Browne | ) www.cnbc.com time to read: +6 min

In a widely-anticipated industry consultation launched Tuesday, the government proposed a number of measures aimed at bringing regulation of crypto asset businesses in line with that of traditional financial firms. A big theme that emerged in 2022 was the rise of risky loans made between multiple crypto firms and a lack of due diligence done on the counterparties involved in those transactions. The collapse of FTX has added urgency to global regulators' attempts to govern the regulation-averse crypto space. The regulatory move comes as crypto firms in both the U.K. and beyond are feeling the chill of a deep downturn known as "crypto winter." Global crypto hub ambitionsThe U.K. wants to become a leader in crypto and blockchain technology on the global stage.

☆ January was bitcoin's best month since 2021, but crypto isn't ready for a 'rocket ship rally' yet
▼ + stars: | 2023-01-31 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +5 min

For some investors, however, its strong month isn't necessarily a green light to jump back into the crypto market. As of Tuesday, bitcoin is set to finish the month up 38.39%, which would make it its best month since October 2021 and its best January in 10 years, according to Coin Metrics. Ether , which led the crypto recovery last summer ahead of the merge, has risen 31% this month, coming off a 67.06% decline for 2022. However, "we're not so sure bitcoin is ready for another rocket ship rally just yet." "Thus far, the rise in BTC dominance looks reminiscent of April 2019, during which a BTC rally marked a crypto market bottom, much akin to rising BTC dominance lately."

☆ U.S. securities regulator probes investment advisers over crypto custody -sources
▼ + stars: | 2023-01-27 | by ( Chris Prentice | ) www.reuters.com time to read: +3 min

NEW YORK, Jan 26 (Reuters) - The U.S. Securities and Exchange Commission is probing registered investment advisers over whether they are meeting rules around custody of client crypto assets, three sources with knowledge of the inquiry told Reuters. SEC enforcement staff are asking investment advisers for details around what the firms did to assess custody for platforms including FTX, one of the sources said. By law, investment advisers cannot have custody of client funds or securities if they do not meet certain requirements to protect the assets. "This is an obvious compliance issue for investment advisers. Under Democratic leadership, the SEC has made crypto a priority area for enforcement, nearly doubling the size of its crypto team last year.

☆ DCG's crypto exchange Luno to cut 35% jobs amid harsh crypto winter
▼ + stars: | 2023-01-25 | by ( ) www.reuters.com time to read: +1 min

"2022 has been an incredibly tough year for the broader tech industry and in particular the crypto market," Luno said in a statement, adding that its growth and revenue has been affected by the downturn. More than a trillion dollars in value was wiped out from the crypto sector last year, with rising interest rates exacerbating worries of an economic downturn. The crash led to high-profile bankruptcies of key industry players such as crypto hedge fund Three Arrows Capital and Celsius Network. Still, the biggest blow came after major exchange FTX filed for bankruptcy protection in November. Last week, the lending unit of crypto firm Genesis filed for U.S. bankruptcy protection, owing creditors at least $3.4 billion after being toppled by the crypto market rout.

☆ Grayscale would appeal lawsuit against SEC if court rejects case, CEO says
▼ + stars: | 2023-01-25 | by ( Hannah Lang | ) www.reuters.com time to read: +3 min

As the company awaits a court ruling on a June lawsuit against the SEC, CEO Michael Sonnenshein said he was prepared to appeal if the court backed the SEC's decision to reject the bitcoin ETF proposal. If either party were to appeal the ruling, the case would either go to the U.S. Supreme Court or an en banc panel review. Oral arguments in the case are scheduled to occur March 7 and Grayscale expects a final ruling on the case in the fall, said Sonnenshein. Grayscale Bitcoin Trust has $14.5 billion assets under management, according to Grayscale’s website. Genesis’ crypto lending unit filed for bankruptcy on Jan. 19.

☆ D.C. appeals court expedites oral arguments in Grayscale lawsuit against SEC
▼ + stars: | 2023-01-24 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +3 min

The SEC on Wednesday rejected Grayscale's application for a spot bitcoin ETF, citing a failure by the investment manager to answer questions about concerns around market manipulation. The District of Columbia Court of Appeals has scheduled a date to hear oral arguments in Grayscale's lawsuit contesting the Securities and Exchange Commission's decision to deny the conversion of its Grayscale Bitcoin Trust to an exchange-traded fund. Grayscale initiated its lawsuit against the SEC in June 2022 after the agency rejected its application to turn its bitcoin trust, better known by its ticker GBTC, into an ETF. The company decided to pursue the ETF, which would be backed by bitcoin rather than bitcoin derivatives, after the SEC approved ProShares' futures-based bitcoin ETF in October 2021. Still, crypto investors are longing to see the SEC approve a U.S. spot bitcoin ETF – and no longer just as a way to open the crypto market to more institutional investment.

☆ Bankrupt crypto lender Genesis optimistic it can resolve creditor disputes
▼ + stars: | 2023-01-23 | by ( Dietrich Knauth | ) www.reuters.com time to read: +3 min

Sean O'Neal, the lawyer, spoke at a hearing in Manhattan bankruptcy court to consider "first-day" motions for Genesis Global Capital, the crypto lending business owned by Barry Silbert's venture capital firm Digital Currency Group. The filing followed the bankruptcies since last July of crypto lenders BlockFi, Celsius Network and Voyager Digital. Brian Rosen, a lawyer for creditors holding $1.5 billion of claims, said "we are getting closer" to an accord. On Jan. 12, the U.S. Securities and Exchange Commission charged Genesis and Gemini with illegally selling unregistered securities through their Gemini Earn lending product. Cameron Winklevoss has also called for Silbert's removal as DCG chief, and threatened litigation against DCG if Genesis' bankruptcy did not result in " a fair offer to creditors."

Just weeks before crypto lender Genesis filed for bankruptcy, three former employees of the company had secured millions of dollars for a new crypto hedge fund, according to correspondence viewed by CNBC. Gemini, a crypto exchange and major Genesis client, accused Ballensweig of falsely reassuring Gemini in July that Genesis was financially stable. The ex-Genesis employees teamed up with Adam Guren from hedge fund Hunting Hill, Ballensweig said. Hunting Hill is a $718 million hedge fund, which launched in 2010 and moved into digital asset investing in 2020 with a crypto opportunities fund. Neither Hunting Hill nor Bessemer immediately responded to a request for comment.

Jan 20 (Reuters) - As an investment banker, Barry Silbert worked on some of the highest-profile corporate failures. Now, as founder of venture capital firm Digital Currency Group, parent of troubled crypto firm Genesis, he is grappling with problems closer to home. Unlike other prominent crypto moguls, Silbert kept a relatively low profile, eschewing the regular tweets favored by his peers. Nasdaq bought SecondMarket in 2015 for an undisclosed amount and Silbert relaunched SecondMarket’s crypto trading division as Genesis Trading the same year, incorporating it into his growing crypto empire. In an open letter posted to Twitter on Jan. 10, Gemini's Cameron Winklevoss demanded the DCG board remove Silbert as CEO and install a new leader.

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