Whatever happens to crypto broker and lender Genesis, investors in its parent company, Barry Silbert’s Digital Currency Group, are likely to get badly burned.
As DCG endeavors to solve Genesis’ financial crisis, it has discussed proposals to pay cash, crypto and issue equity to Genesis’ creditors, say people familiar with the situation. At the very least, DCG’s existing investors, which include Bain Capital, SoftBank, Ribbit Capital and Alphabet’s CapitalG growth fund, are likely to be diluted. Some, such as SoftBank, invested at a valuation of $10 billion in 2021, The Wall Street Journal reported.
