Amid concerns over the health and future of Digital Currency Group (DCG) following the collapse of crypto exchange FTX, company CEO Barry Silbert told shareholders of the crypto conglomerate that while it owes its own Genesis Trading arm $575 million, the firm aims to emerge “stronger” from the crypto winter.
Silbert said in the letter to investors, according to The Wall Street Journal, that the $575 million worth of intercompany loans are due in May 2023, and that DCG took out the loans like any other crypto firm would, “structured on an arm’s length basis and priced at prevailing market interest rates.” DCG also owes Genesis $1.1 billion on a promissory note due in June 2032 related to the default of Three Arrows Capital.
On November 16, Genesis suspended client withdrawals citing the impact of FTX’s unraveling and bankruptcy filing. The company sought a $1 billion bailout prior to halting withdrawals, according to a prior Wall Street Journal report, and warned just days ago of a possible bankruptcy.
This story is developing and will be updated.