One of the largest cryptocurrency companies in
the world is at risk of insolvency and going Bankrupt interesting because just 13 days ago
they made a statement saying our exposure to FTX Has no impact on our ability to serve our clients
today Genesis warns of possible bankruptcy without Funding this is coming from Bloomberg this
is a huge deal Genesis is the biggest Bitcoin OTC desk a major lender and could take down
parent company digital currency Group which Is a Titan in the space and the Silence from
digital currency groups Genesis is spooking The entire cryptocurrency Market why how did we
get here Genesis global trading has been eerily Silent after announcing last week that its crypto
lending unit would halt services in light of ftx's Collapse state of play well five days have passed
since its lending unit ceased withdrawals and new Loan originations and the lack of communication
has opened the door to speculation about the how Health of the overall firm as well as its parent
company digital currency group and its sister Unit grayscale Investments as you can see this
one company is connected to some of the biggest Companies in the entire space so what's the Threat
Level if Genesis were dealing with insolvency Concerns and were to file for bankruptcy that
would imperil digital currency group why this Matters digital currency group or dcg founded by
Barry silbert in 2015 is among the largest crypto Companies in the space sporting a valuation of
10 billion just last year it holds investments in Some 165 companies from public companies including
coinbase Global to well-known private shops Ripple And Ledger in other words a hurt dcg would have
industry-wide repercussions so Genesis needs to Raise some money to cover their whole the only
problem Genesis is having a hard time raising cash For its Landing unit and it is warning potential
investors it could possibly file for bankruptcy If it is unable to do so Bloomberg reported The
Firm has faced a liquidity crunch since ftx's Bankruptcy filings earlier this month and has
been trying to raise at least 1 billion including From binance people familiar with the situation
confirmed to the block that Genesis is struggling To raise the emergency funds however noting that
its fundraising target has been reduced from 1 Billion to just 500 million again how we got here
is Genesis Global Capital The Lending business of Genesis trading last week temporarily suspended
redemptions and new loan originations in the Wake of ftx's collapse and the earlier three Aero
Capital implosion which affected them hard at the Time parent company digital currency group said
business operations at dcg and its other wholly Owned subsidiaries were not affected so Genesis
seemingly facing bankruptcy without at least 500 Million dollar cash infusion binance was offered
and invest in proposal binance rejected this offer CEO of binance CZ now taking to Twitter to make
observations on coinbase custody and grayscale Remember digital currency group and grayscale
have the same CEO founder Barry silbert highly Connected CZ says this so coinbase custody holds
635 000 Bitcoins for grayscale four months ago Coinbase I assumed the exchange reported holding
less than 600 Bitcoin just stating news reports
Not making any claims seems to me like CZ is
sowing seeds of Doubt whether coinbase custody Actually holds this Bitcoin for grayscale and
whether grayscale actually has this Bitcoin Why would CZ do this because coinbase is a public
company and through their audited financials they Actually control 2 million Bitcoins CZ why are you
Tweeting this well at forced Brian Armstrong the CEO of coinbase had forced his hand saying if you
see fought out there remember our financials are Public we're a public company Brian Armstrong
sharing Pages out of their financials saying We hold 2 million Bitcoin almost 40 billion
worth of bitcoin as of September 30th we need To come together to build this industry in
a responsible way going forward be wary of False information and it's true coinbase is a
public company they have to disclose and prove In their financial statements to the regulating
bodies however cryptocurrency is all about don't Trust verify Brian Armstrong show us the wallets
proof of reserves so I'm rooting hard for digital Currency group because I'm rooting for the
hundreds of thousands of investors people Like you and me who would be hurt if Genesis
grayscale and digital currency group don't Execute a successful restructuring I'm rooting
for ethereum D5 not facing massive liquidations If ethereum falls under a certain price we're all
in the same boat right now this affects everyone Genesis purportedly needs 500 million to 1 billion
in emergency financing or it will face bankruptcy Genesis likely already lost more money than it
ever earned thanks to the three Aero Capital Bankruptcy it affected them hard but digital
currency group at the time absorbed the 1.2 Billion bankruptcy claim today digital currency
group the parent company of Genesis currently has Debt in an excess of assets and limited liquidity
but it also has grayscale which produces about 250 To 300 million per year in fees and whose assets
under management is locked digital currency group Holding company should be able to raise money
if it can limit Genesis Capital liabilities Digital currency groups Health begins and ends
with Genesis there is hope there is potential Fear hope digital currency group negotiates
a resolution with Genesis creditors everyone Avoids bankruptcy and the digital currency group
survives or creditors reject the deal Genesis goes Into bankruptcy years of Court battles likely
same bad result for digital currency group the Latter situation Genesis chapter 11 a bankruptcy
is what everyone is assuming right now and that's Bad I don't see it being survivable for digital
currency group reputation wise it seems Genesis Has days not weeks to reach a creditor agreement
in order to avoid chapter 11. subscribe to our Channel more information on all of this is coming
out every day we keep you updated on a daily basis Join us November 28th and 29th to Central Miami
where speaking will be there hope to see you There join us next year for the biggest Bitcoin
conference in the world May 18th through 20th 2023 Celebrates Bitcoin winter in Miami at the Bitcoin
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in every category where we are nominated to recap The 50 billion dollar Empire of digital currency
group might be on the verge of a total collapse They own Genesis they own grayscale they claimed
to have 633 000 Bitcoin in backing but they refuse To prove it is this the beginning of the end well
the discount of the gbtc to net asset value of The grayscale Bitcoin trust reached a record 55
percent discount and it keeps increasing to solve This digital currency group must start liquidating
part of their 633 Bitcoin to restore the situation They might not have the 633 000 Bitcoin they claim
to have and they refuse to show their reserves so There's possibly a huge hole in backing reserves
coinbase claims they began holding grayscale Assets on July 29 2019 and 2019 grayscale claimed
to have 240 000 Bitcoin there is a corresponding Transaction on July 29th here is a Google sheet
with addresses and the amount of Bitcoin held on Each of them 432 wallet addresses with a total of
318 000 Bitcoin were found overall remember 318 000 Bitcoin is just one half of what grayscale
claims to have hopefully the other half is being Properly stored in digital currency group Reserve
addresses these addresses hopefully will be made Public eventually this all caused coinbase to
publish a report where they listed all assets That digital currency group grayscale is backed
by however without listing actual addresses of the Reserves like I showed you Brian Armstrong today
tweeted out if you see fud out there remember Our financials are public we're a public company
leading to just a few hours ago digital currency Group CEO Barry silbert released a letter to
shareholders today Mr silbert States digital Currency group borrowed about 575 million from
Genesis in an arms length deal with the due date Maturing in May of 2023. the loans were used to
fund investment opportunities sound familiar this Is Barry silbert's full letter to shareholders a
lot more needs to come out make sure you subscribe We will be reporting this to you tomorrow
subscribe to the channel see you tomorrow