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Crypto behemoth Digital Currency Group (DCG) is one of the biggest players in the crypto industry, with roughly 200 companies in its portfolio. One of the best known is Grayscale, manager of the eponymous Grayscale Bitcoin Trust, the world’s largest Bitcoin fund. DCG has run into a lot of trouble since the crypto crash of last year, with Genesis Global, its digital asset lender, going bankrupt in January and ceasing all operations last month. This week, the New York Attorney General’s office hit DCG, its subsidiary Genesis Global Capital, and crypto exchange Gemini Trust, alleging the companies defrauded customers of $1.1 billion. DCG was founded in 2015 by Barry Silbert and secured funding from the likes of Bain Capital Ventures, FirstMark Capital, MasterCard, and New York Life when it launched. In 2016, DCG bought crypto news publication CoinDesk for an undisclosed amount. In 2021, DCG secured major investment, with Japanese multinational Softbank leading a $700 million investment round. In the same year, Grayscale announced plans to turn its Bitcoin fund into an ETF, but faced regulatory challenges. In 2022, Grayscale sued the SEC after its application to turn its flagship fund into an ETF was repeatedly denied. In November, Genesis announced to clients that it would pause withdrawals from its lending arm due to the “unprecedented market turmoil”. In December, Gemini got involved after Genesis owed $900 million to users of the high-yield savings product. In January 2023, Genesis Global Capital filed for bankruptcy protection, and later reached a $175 million settlement with FTX. In August, a federal judge decided to overturn the SEC’s decision to block Grayscale from converting its Bitcoin trust into a spot ETF, which was a win for the crypto world. In September, Digital Currency Group announced that Gemini Earn customers could see 95% to 110% recovery on their claims. Finally, in September, the NYAG hit Genesis Global Capital, Gemini Trust, and Digital Currency Group (DCG) with a lawsuit alleging the companies defrauded customers of $1.1 billion. DCG has had a tough 2023, but has seen some wins with Grayscale’s ETF being approved and Gemini Earn customers being able to recover their lost funds. #Crypto #DigitalCurrencyGroup #Grayscale #Gemini #NYAG
You can read more about this topic here: Decrypt: What’s Going On With Crypto Behemoth Digital Currency Group?
