Barry Silbert tries to calm DCG investors

The American billionaire Barry Silbert wrote to the shareholders of his contested Digital Currency Group to convince them of their livelihood, since the fear of a possible insolvency of his crypto broker Genesis increases and the consequences of the collapse of FTX in the industry.

Silver's letter comes almost a week after Genesis has stopped repayments and new lending after the collapse of Sam Bankman-Frieds Krypto-Imperium. The broker -based broker cited in New York that "exceed our current liquidity", and has been trying to procure funds since then.

The Genesis Delense Book is faced with "a problem of liquidity and duration incongruity", Silbert wrote on Tuesday in a letter to the shareholders who was presented by the Financial Times. "These problems have no effect on the Cassa and derivative trade or deposit business of Genesis, which are continued as usual," he added.

Genesis was founded in 2013 and is considered one of the pillars of the crypto industry that offers institutions commercial, credit, depot and derivative services. Last year, Krypto worth $ 116 billion, granted loans worth $ 131 billion and has more than 1,000 institutional trading partners.

The brokerage is a subsidiary of the Digital Currency Group from Silbert, which had a value of $ 10 billion last year, and is financed by first-class supporters such as Softbank, Singapore State Fund and Alphabets Venture Arm CapitalG. DCG's portfolio companies also include the Digital Asset Investment Manager Grayscale, the news site Coindesk, the mining company Foundry and the Wallet provider Luno.

Silbert described loans between Genesis and DCG as "in the ordinary course of business" and "always structured on a standard basis and praised the prevailing market interest".

The group owes Genesis loans worth $ 575 million, which are due in May 2023 and were used to finance DCG share returns and investments, said Silbert. It also has a 2032-due note note of $ 1.1 billion, which was created when DCG took over the liabilities of Genesis in connection with the collapse of the digital-asset hedge fund Three Arrows Capital in summer.

In addition to these debts, according to the letter, DCG has a loan facility of $ 350 million "from a small group of lenders", which is led by Todd Boehly's investment veil Eldridge.

The fears of Genesis's health increased on Monday when the broker said that he was not planning to “immediately” register bankruptcy, a statement that contributed little to calm the cryptoma markets and dropped Bitcoin below $ 16,000.

Silbert, a former investment banker by Houlihan Lokey, said that "all possible options" would be checked.

Loudly familiar with the matter, the conversations of Genesis with Binance failed this week. In the meantime, the Market Maker B2C2 negotiates people familiar with the matter about the purchase of some genesis loans.

The collapse of Genesis would make it the most important victim of the implosion of Bankman-Frieds Ftx and Alameda Research, which shocked the industry and led to crypto companies healing the fear of contagion.

While Genesis says that the problems are only in his loan arm, the entire company is looking for financing. "You have the same risk manager, you share the same compliance officer," said a person familiar with the matter.

worries about the health of DCG have hit Grayscale because his flagship Bitcoin Trust is faced with a discount of almost 50 percent compared to the Bitcoin price.