Currency group (dcg) and its subsidiary genesis have been in the news recently. dcg, which owns stakes in over 200 crypto projects, is considering selling some of its venture portfolio to come up with funds to help genesis cover a $3 billion shortfall. this includes data firm dune analytics, ethereum block explorer etherscan, crypto exchange coinbase, and usd coin issuer circle.
Events began in mid-november when genesis suspended client withdrawals from its lending arm due to exposure to the now-collapsed ftx. as a result, gemini’s earn product, which uses genesis as its lending partner, had to freeze customers’ withdrawals. it’s estimated that genesis owes customers of the winklevoss-founded crypto broker $900 million. on november 10, the company said on twitter that its derivatives business has approximately $175 million locked in an ftx trading account.
Response to the situation, gemini ceo and co-founder cameron winklevoss publicly accused crypto broker genesis and dcg of accounting fraud. dcg ceo barry silbert shot back at what he called “another desperate and unconstructive publicity stunt.” to help genesis cover the $3 billion shortfall, dcg is now considering selling its venture portfolio, which is worth approximately $500 million.