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Genesis onboards financial advisors as it explores ‘all possible options’

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Genesis onboards financial advisors as it explores ‘all possible options’

  • Genesis has hired global investment bank – Moelis & Company to explore all possible options including bankruptcy
  • DCG’s CEO Barry Silbert revealed that the parent company owes Genesis $575 million

Genesis Global Trading may soon join FTX’s sinking ship. A bankruptcy option has made it on the table despite the firm claiming otherwise on Monday. According to the latest reports, the firm has hired the global investment bank – Moelis & Company. And, it is reportedly looking at “all possible options” including bankruptcy. However, it should be noted that Genesis has not sealed the bankruptcy deal yet. And, it could “avert a bankruptcy filing”, according to a NYTimes report.

Financial and legal advisors hired to save firm

Moreover, Barry Silbery – CEO of Digital Currency Group – spoke about the recent events in a message to shareholders. Silbert highlighted that the problem currently lies with Genesis’ lending arm, while its spot and derivatives market is continuing business as usual.

Genesis’ lending platform suspended withdrawals and sanctions of new loans on November 16, and the aftermath of the action has been felt across Digital Currency Group’s subsidiaries. The firm took a serious downturn as a result of FTX’s collapse. It was revealed that it had about $175 million locked in the now-defunct exchange. Despite the initial assurance, this shock weighed heavy on the firm as it had already taken a hit from 3AC’s collapse.

And, now, the firm seems to be looking into ways to contain the damage while a bankruptcy option remains on the table. In a letter to shareholders, Silbert said,

“Genesis leadership and their board decided to hire financial and legal advisors and the firm is exploring all possible options amidst the fallout from the implosion of FTX”

DCG owes Genesis millions of dollars

The letter also shed more light on the firm’s balance sheet. DCG’s liability to Genesis stands at $575 million, and it is due in May 2023. Silbert stated that this money was used to make investments and buy back DCG stock from non-employees. Adding this, Genesis Global has an overall outstanding debt of $2.8 billion, according to a Bloomberg report.

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Silbert also said,

“You may also recall there is a $1.1B promissory note that is due in June 2032 (…) Aside from the Genesis Global Capital intercompany loans due in May 2023 and the long-term promissory note, DCG’s only debt is a $350M credit facility from a small group of lenders led by Eldridge”

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot’s writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S – There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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Alabama Securities Commission

Report: State Securities Regulators Probe Crypto Lender Genesis

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Report: State Securities Regulators Probe Crypto Lender Genesis

State securities regulators are reportedly investigating Genesis Global Capital in a broad range probe into the “interconnectedness of crypto firms,” Barron’s reported on Friday. The report notes that the Alabama Securities Commission is looking into whether or not cryptocurrency firms have violated securities laws without filing the proper registrations.

Report Says Financial Regulators Are Investigating Genesis Global Capital and the Interconnected Activities of Other Crypto Firms

There’s been a lot of focus on Genesis Global Capital and its lending operation since Genesis announced on Nov. 16, 2022 it was temporarily suspending withdrawals and new loan originations. Days later, the New York Times (NYT) reported that Genesis Global Capital hired a restructuring adviser. The NYT report detailed that Genesis “hired the investment bank Moelis & Company to explore options including a potential bankruptcy, three people familiar with the situation said.”

However, reports published by The Block and the Wall Street Journal shared a letter written by Barry Silbert, the CEO of Genesis’ parent company Digital Currency Group (DCG). Silbert’s letter reassures DCG shareholders that his company will “continue to be a leading builder of the industry.” Silbert did touch upon Genesis in the shareholder letter and he highlighted that it’s important to note that the lending arm of Genesis has had “no impact on Genesis’ spot and derivatives trading or custody businesses, which continue to operate as usual.”

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On Friday, Barron’s author Joe Light reported on Genesis Global Capital and the report claims that state securities regulators are involved in an alleged Genesis probe. Light cited the Alabama Securities Commission and its director Joseph Borg as one of the states looking into the alleged “interconnectedness of crypto firms.”

Light’s report indicates the ostensible probe involves agencies from “several other states” but as far as other crypto firms, only Genesis was mentioned. “Borg declined to name the other companies,” the Barron’s author detailed. The report further claims the probe’s general focus is on “whether Genesis and other companies enticed residents to invest in crypto-related securities without making the proper registrations.”

State securities regulators in the United States have been cracking down and investigating crypto firms for quite some time. Regulators from specific states have filed actions against a number of cryptocurrency firms like Celsius, Blockfi, Nexo, and FTX. The securities regulators’ complaints are all very similar, as they question whether or not crypto firms are selling unregistered securities to retail investors.

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Alabama Securities Commission, alleged investigation, Bankruptcy, Barron’s, Barry Silbert, DCG, DCG CEO, Digital Currency Group, genesis, Genesis Global Capital, Interconnected Activities, Joe Light, Joseph Borg, NYT, Regulations, Regulators, restructuring, restructuring options, Securities, Shareholders, state securities regulators

What do you think about the report that says there’s an alleged investigation into Genesis and crypto company interconnectedness? Let us know what you think about this subject in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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17 MW

DCG Subsidiary Foundry To Acquire 2 ‘Turnkey’ Bitcoin Mining Facilities From Compute North

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DCG Subsidiary Foundry To Acquire 2 ‘Turnkey’ Bitcoin Mining Facilities From Compute North

Digital asset mining and staking firm Foundry has agreed to purchase two “turnkey” bitcoin mining facilities from Compute North, a bitcoin miner that filed for Chapter 11 bankruptcy protection on Sept. 22, 2022. Foundry says the two data centers have a total power capacity of around 17 megawatts (MW), and the company also has the rights to purchase a third site from the troubled bitcoin mining business. Foundry’s acquisition announcement follows the speculation surrounding Genesis Global Capital, another business owned by the company’s parent firm Digital Currency Group.

DCG-Owned Foundry Digital Plans to Acquire 2 ‘Turnkey’ Facilities from Compute North, Foundry Has Option to Purchase a Third Site

On Tuesday, the mining and staking firm Foundry Digital announced it has plans to acquire two data centers from Compute North. The two “turnkey sites” are located in North Sioux City, SD, and Big Springs, TX. The sites will give Foundry 17 MW of operational capacity and “a fleet of mining machines owned by Compute North.” Additionally, Foundry also has the rights to acquire another site owned by Compute North located in Minden, NE.

Compute North filed for Chapter 11 bankruptcy protection on Sept. 22, 2022, as it joins a broad range of cryptocurrency firms that have filed for bankruptcy this year. Bitcoin mining operations that have made it this far are dealing with the difficulty at an all-time high and BTC prices below cost of production.

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The Digital Currency Group (DCG) subsidiary Foundry also manages the world’s largest bitcoin mining pool, in terms of total hashrate, Foundry USA. With 62.12 exahash per second (EH/s), three-day statistics show the pool currently commands 24.20% of the Bitcoin network’s current 256.74 EH/s hashrate.

With All Eyes on DCG’s Genesis, Foundry Says It Plans to ‘Continue Building Upon the Foundation’ Built by Compute North

Foundry’s recent acquisition announcement comes at a time when eyes are fixated on Genesis Global Capital, a company owned by Foundry’s parent company Digital Currency Group. Genesis revealed on Nov. 16, 2022, that its lending unit would temporarily suspend withdrawals and new loan originations. Days later, a report from the New York Times (NYT) claims Genesis Global Capital was exploring restructuring services.

The NYT article detailed that Genesis Global Capital “hired the investment bank Moelis & Company to explore options including a potential bankruptcy, three people familiar with the situation said.” Despite the swirling speculation, reports from the Wall Street Journal and The Block indicate that DCG CEO, Barry Silbert, has reassured the company’s shareholders: “DCG will continue to be a leading builder of the industry.”

Foundry’s announcement also follows the mining and staking-focused company launching a new bitcoin mining hardware training program. Mike Colyer, the CEO of Foundry, further detailed that the mining and staking company looks forward to continuing what Compute North had previously built.

“It has been our mission to strengthen the infrastructure of digital assets by supporting mining companies through all market cycles,” Colyer said. “Compute North has been our longtime partner and we are happy to have the opportunity to continue building upon the foundation they have laid over many years while growing the North American mining ecosystem.”

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17 MW, 2 data centers, 2 facilities, Bankruptcy, Barry Silbert, Big Springs TX, bitcoin mining pool, CEO of Foundry, compute north, DCG, DCG CEO, Digital Currency Group, Foundry, Foundry Digital, Foundry USA, genesis, Genesis Global Capital, Mike Colyer, North Sioux City, Shareholders

What do you think about Foundry Digital revealing plans to acquire two mining facilities from Compute North? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Barry Silbert

Ethereum Co-Founder Vitalik Buterin Downplays Ethereum PoW Fork, Hopes It ‘Doesn’t Lead To People Losing Money’

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Ethereum Co-Founder Vitalik Buterin Downplays Ethereum PoW Fork, Hopes It ‘Doesn’t Lead To People Losing Money’

Ethereum co-founder Vitalik Buterin recently discussed what he thinks about the recent Ethereum proof-of-work (PoW) fork topic that’s been finding its way into a number of conversations within the crypto community. Buterin remarked at the ETH-Seoul conference over the weekend, that he believes the people introducing the forked token concept are basically a “couple of outsiders” that “mostly just want to make a quick buck.”

Vitalik Buterin Gives His Opinion on the Proposed Ethereum PoW Fork Idea

A lot of people within the crypto community have been discussing a possible ETH PoW fork (ETHW) that is unique from the existing Ethereum Classic blockchain. Bitcoin.com News reported on the influential Chinese crypto miner Chandler Guo, who initiated the ETHW conversation after explaining that he participated in the birth of Ethereum Classic (ETC). The idea then gained more traction, as a website called ethereumpow.org was published and a few exchanges decided to list the fork.

Presently, the IOU tokens for ETHW are worth $138.69 per token, according to coinmarketcap.com metrics and against Tron’s USDD stablecoin, ETHW is exchanging hands for 142.27 USDD on Poloniex. This weekend, co-founder of Ethereum Vitalik Buterin discussed ETHW during a Q&A session at the ETH-Seoul conference. Buterin downplayed the possibility of a fork of this kind seeing long-term acceptance. “I’m not expecting it to have substantial, long-term adoption,” Buterin stressed.

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The Ethereum developer and co-founder also talked about Ethereum Classic (ETC) and Buterin complimented the ETC community. “I think Ethereum Classic already has a superior community and a superior product for people kind of with those pro-proof-of-work values and preferences,” Buterin stated. When Buterin was asked about the ETHW proposal, he explained that those involved with its creation are just a “couple of outsiders that basically have exchanges, and mostly just want to make a quick buck.” Buterin added:

I hope that whatever happens, doesn’t lead to people losing money.

Digital Currency Group CEO Barry Silbert Discusses ETHW, Buterin Doesn’t See Fork Harming Ethereum’s Ecosystem

Buterin’s commentary follows the statements the founder and CEO of Digital Currency Group (DCG), Barry Silbert, has made about the ETHW idea on Twitter. Silbert tweeted to the Galois Capital account on Twitter and said: “[For what it’s worth], our full support is behind [Ethereum proof-of-stake], in addition to [Ethereum Classic], and have zero intention to support any [Ethereum proof-of-work] fork. [Ethereum] miners should move to [Ethereum Classic] to maximize their revenue long-term. Simple as that.”

Silbert has also made other statements on Twitter directly to some of Chandler Guo’s threads, and Guo asks Silbert in one tweet: “why only [Ethereum Classic]?” The DCG executive replied and said it is “the smart play for [ethereum] miners” and he also mentioned that Antpool is leading the initiative to support the Ethereum Classic chain. When someone told Silbert to stop engaging with Guo, Silbert responded and said: “I like and respect Chandler. Just disagree with him on this strategy.”

Meanwhile, at this weekend’s ETH-Seoul conference, Buterin detailed that he doesn’t expect Ethereum (ETH) to be deterred by the possibility of another fork. “I don’t expect Ethereum to really be significantly harmed by another fork,” Buterin remarked. On Twitter, it’s business as usual for Buterin, as the software developer tweeted about stealth addresses for ERC721 (non-fungible tokens) NFTs on Monday. “A low-tech approach to add a significant amount of privacy to the NFT ecosystem,” the Ethereum co-founder said.

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Barry Silbert, Buterin, Buterin’s Opinion, Chandler Guo, Chandler Guo ETC, Chandler Guo ETH, Chandler Guo tweet, DCG CEO, ETC, ETC fork, ETH fork, ETH-Seoul conference, ETH-Seoul Q&A, Ethereum Classic, ethereum classic (ETC), Ethereum Classic Hashrate, Ethereum PoW, ETHW, ETHW website, Fork, Listing ETHW, Poloniex, Poloniex Listing, PoW version of Ethereum, Vitalik Buterin

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What do you think about Vitalik Buterin’s opinion concerning the possible Ethereum PoW fork that has been discussed ahead of The Merge? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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