TRON founder Justin Sun spoke to Reuters and reported that embattled crypto lending platform Genesis is ready to spend $1 billion in its own funds to buy assets from parent company Digital Currency Group (DCG). As it is known, Genesis froze customer withdrawals in November and announced that it was trying to avoid filing for bankruptcy. According to people familiar with the matter, the company owes more than $3 billion to its creditors.
DCG is also the parent company of several high-profile crypto firms, including crypto investment management firm Grayscale. DCG, which supports more than 160 companies, is considering divesting some of this portfolio to raise money, the Financial Times reported yesterday. Cameron Winklevoss, one of the founders of the Gemini exchange, also recently accused DCG CEO Barry Silbert of defrauding them. DCG responded by saying, “Winklevoss’ desperate and useless advertising work.”
Sun stated that $1 billion will be spent “on a case-by-case basis,” but did not specify which assets he intends to purchase. Meanwhile, his spokesperson did not disclose details of Sun’s wealth, but said it consists of crypto and fiat currencies.
Meanwhile, Binance said it had signed a non-binding agreement to buy its rival’s international arm to save cryptocurrency exchange FTX, which collapsed in November. A day later, Binance announced that it was abandoning this plan after due diligence. While FTX sought emergency funding, Bloomberg reported that Sun said it was ready to provide “billions” in aid, but that deal didn’t materialize either.