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Report: Crypto Firm DCG Is Contending with Tons of Debt

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LBN Sweden Bitcoin Debt

DCG (Digital Currency Group) – the crypto company that owns Grayscale – is allegedly $2 billion in debt, giving traders and crypto analysts a lot to be anxious about.

DCG Is Allegedly Dealing with Tons of Debt

Barry Silbert – the man who founded DCG – stated in an interview:

We have weathered previous crypto winters. While this one may feel more severe, collectively we will come out of it stronger.

The goal was to try and calm people’s nerves, though this is easier said than done given that this crypto bear run appears to be unlike anything the space has ever experienced or seen before. Right now, bitcoin – the world’s number one digital currency by market cap – has lost more than 70 percent of its overall value.

In November of 2021, for example, the currency rose to a new all-time high of about $68,000 per unit. However, since then, the currency has fallen into the mid-$16K level. Many other digital currencies have followed suit and the space has lost more than $2.2 trillion in overall valuation. It’s a sad, and above all, scary sight to see; one that puts many investors in a state of harsh worry.

The news regarding DCG was first brought to light on Twitter by crypto commentator TradFiWhale, who reported:

DCG’s Grayscale business is extremely valuable. DCG doesn’t want to fire sale this, so, they will likely let Genesis go under. Genesis likely filing for bankruptcy. I think creditors will eventually get most of [the] money back, and DCG will survive with a black eye and marred reputation.

In response to the news getting out, DCG issued its own tweet trying to bring people’s concerns to a lower position. It wrote:

The impact lies with the lending business at Genesis and does not affect Genesis’ trading or custody businesses. Importantly, this temporary action has no impact on the business operations of DCG and our other wholly owned subsidiaries.

Not long ago, Silbert went onto a podcast to try and shed light on the situation. He was asked by the podcast host if Genesis was going to take “cryptocurrency down.” Silbert responded with:

Despite the difficult industry conditions, I am as excited as ever about the potential for cryptocurrencies and blockchain technology over the coming decades, and DCG is determined to remain at the forefront.

FTX to Blame?

The entire crypto space has been suffering since the beginning of 2022. However, things allegedly got a lot worse when last November, golden child FTX – long considered one of the best and most popular digital currency exchanges in the world – fell into oblivion.

The company experienced a sudden liquidity crunch that saw it seeking aid from rival Binance. When the latter refused to help, the company was forced into bankruptcy and its head executive (Sam Bankman-Fried) resigned from his post.

Tags: Barry Silbert, DCG, FTX


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BitPay Announces Partnership With MoonPay – Bitcoin Magazine

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Bitcoin And Artificial Intelligence Frees Your Time - Bitcoin Magazine


BitPay and MoonPay, leading bitcoin and cryptocurrency payments infrastructure providers, have partnered “to provide BitPay users with significantly increased ways to buy cryptocurrency instantly, and at great rates.”

“BitPay’s unique marketplace experience also presents multiple rates for buyers, ensuring they receive the best possible price for their cryptocurrency purchases,” the press release states. “Additional benefits of the integration include fast delivery to any owned wallet address, as well as the ability for buyers to pay with their preferred method, including credit card, debit card, Apple Pay, Google Pay or a variety of local bank transfer methods.”


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Why Real Regulatory Change In Crypto Has Not Happened

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Why Real Regulatory Change In Crypto Has Not Happened



Legislators need to educate themselves on Web3 if they care about protecting consumers, Steven Eisenhauer, chief risk and compliance officer at Ramp, writes.


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South Korea to deploy cryptocurrency tracking system in 2023

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South Korea to deploy cryptocurrency tracking system in 2023


The Ministry of Justice in South Korea announced plans to introduce a crypto-tracking system to counter money laundering initiatives and recover funds linked to criminal activities.

The “Virtual Currency Tracking System” will be used to monitor transaction history, extract information related to transactions and check the source of funds before and after remittance, according to local media outlet khgames.

While the system is slated to be deployed in the first half of 2023, the South Korean ministry shared plans to develop an independent tracking and analysis system in the second half of the year. A rough translation of the ministry’s statement reads:

“In response to the sophistication of crime, we will improve the forensic infrastructure (infrastructure). We will build a criminal justice system that meets international standards (global standards).”

The South Korean police previously established an agreement with five local crypto exchanges to cooperate in criminal investigations and ultimately create a safe trading environment for crypto investors.

Related: South Korean prosecutors request arrest warrant for Bithumb owner: Report

The South Korean Supreme Court ruled that crypto exchange Bithumb must pay damages to investors over a 1.5-hour service outage on Nov. 12, 2017.

The finalized ruling from the supreme court ordered damages ranging from as little as $6 to around $6,400 be paid to the 132 investors involved.

“The burden or the cost of technological failures should be shouldered by the service operator, not [the] service users who pay commission for the service,” the court stated.


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