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☆ 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.

☆ Cathie Wood sees bitcoin rising above $500,000 and lauds its resiliency after FTX collapse
▼ + stars: | 2023-02-01 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +3 min

Ark Invest chief investment officer Cathie Wood is still bullish on the cryptocurrency, however, and continues betting its price will eventually reach $500,000, she told CNBC's "Squawk Box" Wednesday morning. Wood is also a big investor in the Grayscale Bitcoin Trust, known by its ticker GBTC, through the ARK Next Generation Internet ETF (ARKW) . Last year, Grayscale sued the Securities and Exchange Commission over its decision to block the conversion of its Grayscale Bitcoin Trust to an exchange-traded fund. "The SEC has dragged its feet in terms of a bitcoin ETF, while approving a bitcoin futures ETF – it just doesn't make any sense to us," Wood added. Wood just posted her best month ever as her beaten-down favorite stocks staged a big comeback in the new year.

☆ Investors Who Bet on Bitcoin Fund in Retirement Accounts Pay the Price
▼ + stars: | 2023-01-30 | by ( Vicky Ge Huang | ) www.wsj.com time to read: 1 min

Grayscale and others’ attempt to turn GBTC into an exchange-traded fund so far has been rejected by the SEC. For many years, individual investors used the Grayscale Bitcoin Trust as a way to bet on bitcoin in their retirement accounts. Now they are paying the price. The $14.6 billion trust, known by its ticker GBTC, was one of the few options for individual investors to get exposure to bitcoin without having to purchase the cryptocurrency directly.

☆ 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.

☆ Grayscale CEO: Expecting a decision on SEC lawsuit in Q2, Q3 this year
▼ + stars: | 2023-01-24 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailGrayscale CEO: Expecting a decision on SEC lawsuit in Q2, Q3 this yearGrayscale CEO Michael Sonnenshein joins 'Squawk Box' to discuss the latest from crypto regulation in D.C. and more.

☆ 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."

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.

☆ Crypto lending unit of Genesis files for US bankruptcy
▼ + stars: | 2023-01-20 | by ( ) edition.cnn.com time to read: +3 min

The lending unit of crypto firm Genesis filed on Thursday for US bankruptcy protection from creditors, toppled by a market rout along with the likes of exchange FTX and lender BlockFi. Genesis Global Capital, one of the largest crypto lenders, froze customer redemptions on Nov. 16 after FTX stunned the financial world with its bankruptcy, fueling concern that other companies could implode. Genesis’ lending unit said it had both assets and liabilities in the range of $1 billion to $10 billion in its filings with the US Bankruptcy Court for the Southern District of New York. Genesis Global Holdco, the parent group of Genesis Global Capital, also filed for bankruptcy protection, along with another lending unit Genesis Asia Pacific. The two firms are fighting over a crypto lending product called Earn that they jointly offered.

☆ Crypto lending unit of Genesis files for U.S. bankruptcy
▼ + stars: | 2023-01-20 | by ( ) www.reuters.com time to read: +3 min

Jan 19 (Reuters) - The lending unit of crypto firm Genesis filed on Thursday for U.S. bankruptcy protection from creditors, toppled by a market rout along with the likes of exchange FTX and lender BlockFi. Genesis Global Capital, one of the largest crypto lenders, froze customer redemptions on Nov. 16 after FTX stunned the financial world with its bankruptcy, fuelling concern that other companies could implode. Genesis' lending unit said it had both assets and liabilities in the range of $1 billion to $10 billion in its filings with the U.S. Bankruptcy Court for the Southern District of New York. Genesis Global Holdco, the parent group of Genesis Global Capital, also filed for bankruptcy protection, along with another lending unit Genesis Asia Pacific. The two firms are fighting over a crypto lending product called Earn that they jointly offered.

☆ Grayscale Bitcoin Trust could double by midyear, Ned Davis Research says
▼ + stars: | 2023-01-19 | by ( Jesse Pound | ) www.cnbc.com time to read: +3 min

Crypto is off to a hot start in 2023, and an embattled bitcoin fund gives investors a tool to squeeze more out of this rally, according to Ned Davis Research. Pat Tschosik, a senior portfolio strategist at the firm, said in a note to clients that the Grayscale Bitcoin Trust (GBTC) could give investors a 100% return by midyear. Bitcoin has rallied more than 25% to start the year and is trading above $20,000 again. The discount means that the fund's shares are priced below the bitcoin holdings they represent. However, Tschosik pointed out that the NAV discount for the Grayscale fund has been closing in recent weeks after some activist investors got involved.

LONDON, Jan 13 (Reuters) - Chinese crypto entrepreneur Justin Sun is willing to spend $1 billion of his own funds on buying assets belonging to Digital Currency Group (DCG), the parent company of embattled crypto lender Genesis, Sun told Reuters. Genesis' owner, DCG, is also the parent company of several high-profile crypto firms, including crypto asset manager Grayscale, and its website lists more than 160 companies in its venture capital portfolio. DCG is considering offloading parts of that portfolio to raise money, the Financial Times reported on Thursday. Sun told Reuters in an interview he would be willing to spend up to $1 billion to buy some of DCG's assets, "depending on their evaluation of the situation". When major crypto exchange FTX faced a rush of investor withdrawals in November, Binance said it had signed a no-nbinding agreement to buy FTX's non-U.S. unit.

Jan 12 (Reuters) - Crypto broker Genesis owes creditors more than $3 billion, a person familiar with the matter told Reuters, as woes pile up for its owner, venture capital company Digital Currency Group (DCG). DCG is considering offloading parts of its venture capital holdings to raise money, the Financial Timesreported Thursday. DCG's portfolio includes 200 crypto-related projects such as exchanges, banks and custodians in at least 35 countries, and are worth about $500 million, the report added. Meanwhile, its parent DCG saw calls from Cameron Winklevoss, co-founder of crypto exchange Gemini, for the removal of DCG's chief executive officer, Barry Silbert, earlier this week amid tensions between the high-profile executives. Stamford, Connecticut-based DCG is also the parent company of several high-profile crypto firms, including crypto asset manager Grayscale.

Jan 12 (Reuters) - U.S. crypto company Digital Currency Group (DCG) is at the center of the industry's latest meltdown after one of its companies, Genesis, froze customer withdrawals in November. Here is what we know about the many companies Digital Currency Group owns:COINDESKDCG acquired crypto news website CoinDesk in 2016 after previously investing in the outlet. Genesis' crypto lending arm, Genesis Global Capital, announced in November its crypto lending arm would stop making new loans and blocked customers from withdrawing funds, citing the market dislocation caused by the collapse of FTX. Genesis Global Capital had partnered with a number of other crypto companies, including crypto exchange Gemini, to offer a crypto lending product. DCG itself owes $1.675 billion to Genesis' crypto lending arm, according to a November letter Silbert sent to shareholders.

☆ DCG's crypto broker Genesis owes creditors more than $3 bln - FT
▼ + stars: | 2023-01-12 | by ( ) www.reuters.com time to read: +1 min

Jan 12 (Reuters) - Crypto broker Genesis owes creditors more than $3 billion, prompting its owner Digital Currency Group (DCG) to explore selling assets in its venture portfolio to raise money, the Financial Times reported on Thursday, citing people familiar with the matter. Genesis and DCG did not immediately respond to Reuters requests for comment. Several crypto companies have lately been under pressure trying to navigate unprecedented industry-wide turmoil amid waning investor appetite for digital assets after major exchange FTX blew up late last year. Meanwhile, its parent DCG saw calls from Cameron Winklevoss, co-founder of crypto exchange Gemini, for the removal of DCG's chief executive officer, Barry Silbert, earlier this week amid tensions between the high-profile executives. Stamford, Connecticut-based DCG is also the parent company of several high-profile crypto firms, including crypto asset manager Grayscale.

☆ Crypto lender Genesis reportedly owes creditors $3 billion, and is eyeing the sale of its parent company's venture assets to raise funds
▼ + stars: | 2023-01-12 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

Crypto lender Genesis owes its creditors more than $3 billion, the Financial Times reported on Thursday. Genesis' parent company DCG may sell assets in its venture portfolio to raise fresh cash. Genesis' lending arm took hits after FTX filed for bankruptcy, causing a liquidity crisis late last year. Digital Currency Group (DCG), the crypto conglomerate that oversees Genesis, is also looking to sell assets in its venture portfolio to raise fresh cash, per the Financial Times. In November, Gemini had to halt withdrawals for its interest-bearing product due to a liquidity crisis with Genesis, its lending partner.

Silbert is the founder of Digital Currency Group (DCG), a crypto conglomerate that includes the Grayscale Bitcoin Trust and trading platform Genesis. Winklevoss, along with his brother Tyler, co-founded Gemini, a popular crypto exchange that, unlike many of its peers, is subject to New York banking regulation. Winklevoss and Silbert were linked through an offering called Earn, a nearly two-year-old product from Gemini that promoted returns of up to 8% on customer deposits. With Earn, Gemini loaned client money to Genesis for placement across various crypto trading desks and borrowers. Silbert has avoided responding directly to Winklevoss' latest accusation, though the company has taken up his defense.

☆ From the Shanghai upgrade to U.S. regulation: Watch these 5 events to see where crypto markets are heading in 2023
▼ + stars: | 2023-01-11 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +7 min

Unlike in previous crypto winters, however, macro forces outside the crypto industry are the biggest drivers of the market. The Shanghai upgrade Ethereum developers are gearing up for the network's next big upgrade, the "Shanghai" upgrade, which has a target release of March 2023. "The problem right now is if you stake ether into the network, your ether will be locked until the Shanghai upgrade," Lau said. "There will be more liquidity of ether after the Shanghai upgrade," he added. Gox but the expected distribution of the bitcoin recovered from the exchange's 2014 implosion could be a near-term headwind for bitcoin investors.

☆ Billionaire bitcoin bull Mike Novogratz says 2023 will be a year for crypto markets to try and survive, and 'heal and rebuild narrative'
▼ + stars: | 2023-01-10 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +2 min

Galaxy Digital CEO Mike Novogratz is still mostly upbeat about crypto in 2023. "The outlook for crypto is not horrible, but it's not great," Novogratz told CNBC. The bitcoin bull said crypto brokerage Genesis' liquidity woes are hanging over the industry. The bitcoin bull says the crypto outlook is "not horrible, but it's not great," he told CNBC's Squawk Box on Tuesday. Novogratz says that the Gemini and DCG debacle won't involve "a lot of selling" for crypto markets, but it's "just not great news."

☆ Who is DCG's Barry Silbert, the crypto baron in the crosshairs of the Winklevoss twins over 'bad faith' business practices?
▼ + stars: | 2023-01-09 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +4 min

Barry Silbert is the CEO of Digital Currency Group, the crypto conglomerate that owns Genesis and Grayscale. In 2015, the 46 year old started Digital Currency Group (DCG), the $10 billion parent company that controls industry giants like crypto brokerage Genesis and digital asset manager Grayscale. The conglomerate also owns trade publication Coindesk, crypto mining firm Foundry Services, crypto index provider TradeBlock, and digital asset platform Luno Global. Cameron Winklevoss blasted Silbert for "bad faith" business practices last week, alleging the crypto baron owes the digital asset exchange's customers $900 million. Prior to launching DCG, Silbert went to Emory University's Goizueta Business School and began his career as an investment banker at Houlihan Lokey.

☆ Crypto lender Genesis Trading lays off 30% of workforce
▼ + stars: | 2023-01-05 | by ( Rohan Goswami | ) www.cnbc.com time to read: +1 min

Genesis had already laid off 20% of its workforce and last year replaced its CEO. Silbert's crypto conglomerate, which includes the Grayscale Bitcoin Trust (GBTC) and mining company Foundry, was hit by the market tumult of 2022 and the bankruptcy of crypto hedge fund Three Arrows Capital. The Wall Street Journal reported earlier on the cuts. Genesis engaged bankruptcy professionals shortly after the collapse of crypto exchange FTX and its sister hedge fund Alameda Research. The Wall Street Journal reported that Genesis had sought an emergency loan of $1 billion shortly after the implosion of Alameda, which was a major Genesis client.

☆ Factbox: From BlockFi to Genesis, crypto firms reel from exposure to FTX
▼ + stars: | 2023-01-05 | by ( ) www.reuters.com time to read: +5 min

Jan 5 (Reuters) - After the collapse of major cryptocurrency exchange FTX, the industry has felt a ripple effect due to the exposure of many companies to FTX and its affiliated trading firm Alameda Research. Here are some firms that have given information about their exposure to FTX. The crypto lending arm of U.S. digital asset broker Genesis Trading suspended customer redemptions last month, citing the sudden failure of FTX. Genesis said in a tweet on Nov. 10 that its derivatives business has approximately $175 million in locked funds on FTX. COINSHARESCrypto asset manager CoinShares has $30.3 million worth of exposure to crypto exchange FTX, it said in a statement on Nov. 10.

☆ Coinbase settles with New York state financial regulator for $100 million, stock spikes
▼ + stars: | 2023-01-04 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

Coinbase signage in New York's Times Square during the company's initial public offering on the Nasdaq on April 14, 2021. Coinbase settled a case with New York's state financial regulator, the parties announced Wednesday, and will pay a $50 million fine and invest a further $50 million in compliance efforts. Regulators from the New York Department of Financial Services said the company had longstanding failures in its anti-money laundering program. "This agreement includes a $50 million penalty and a separate commitment from Coinbase to invest $50 million in our compliance program over two years," Coinbase Chief Legal Officer Paul Grewal said in a statement. Regulators wrote that Coinbase's compliance shortcomings led to "suspicious or unlawful conduct being facilitated through Coinbase's platform," according to the consent order.

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