It looks like the bear cycle is going to claim yet another high-profile cryptocurrency. On January 19, Genesis, a subsidiary of Digital Currency Group (DCG’s) lender, Filed for Chapter 11 bankruptcy. Here we have another industry giant with an incestuous lending story, little risk management to speak of and opaque reporting policies.
For market participants, the storm clouds gathering in DCG represent an unimaginable failure in 2021. Founded by CEO Barry Silbert in 2015, DCG has become a mainstay in the short digital currency’s existence. The Genesis filing revealed the full range of creditors affected by its implosion, which notably included Gemini, the cryptocurrency exchange set up by Winklevoss twins Cameron and Tyler, and which Genesis said owed $765 million; Metaverse Decentraland Project ($55 million); and fund manager VanEck ($53 million).
Joseph Bradley He is the Head of Business Development at Heirloom, a software-as-a-service startup. He started in the cryptocurrency industry in 2014 as a freelance researcher before going to work at Gem (later acquired by Blockdaemon) and later moving into the hedge fund industry. He holds a master’s degree from the University of Southern California with a focus on portfolio creation and alternative asset management.