Digital Currency Group (DCG), the parent company of troubled cryptocurrency lender Genesis, is selling some of its assets. Chinese crypto entrepreneur and former Tron blockchain co-founder Justin Sun is ready to spend $1 billion to buy it.
DCG, the owner of Genesis, lists more than 160 companies in its venture portfolio on its website. DCG is the parent company of several well-known cryptocurrency businesses, such as crypto asset management company Grayscale. DCG is considering selling part of its portfolio for financial reasons.
Earlier, Genesis froze customer withdrawals in November 2022 to avoid filing for bankruptcy. It currently owes more than $3 billion to creditors.
In a recent interview with Reuters, Sun said he would be willing to spend up to $1 billion to buy some of DCG’s assets “depending on DCG’s assessment of the situation.”
Reuters needs help determining the extent of Sun's wealth. DCG is estimated to be worth $10 billion and has assets worth $50 billion as of 2021.
According to calculations, Justin Sun’s net worth is currently estimated to be between $250 million and $3 billion, depending on whether traditional assets and cryptocurrencies are included in the estimate.
DCG has so far declined all requests for comment on the latest developments and Sun's expressed interest.
Entities associated with Justin Sun also face challenges
Entities related to Justin Sun and DCG are currently facing challenges. DCG subsidiary Genesis said earlier this month it would cut 30% of its workforce due to market conditions.
Last year, Genesis stopped allowing users to withdraw funds from its joint lending service Earn with Gemini, accusing it of owing customers more than $3 billion.
Huobi, an Asian cryptocurrency exchange where Sun serves as an adviser, said this week it would cut 20% of its staff, with problems limited to employee expenses as the business continues to provide customer service.
Meanwhile, Justin Sun has expressed interest in several failed companies, including DCG. In the second half of 2022, he also worked hard to acquire the assets of Credit Suisse and FTX.
