• December 5, 2023


All the latest cryptocurrency news

Crypto Community Believes DCG May Have Problems Due to FTX’s Collapse

Reading time: < 1 minute

The refusal of digital asset manager Grayscale Investments to disclose information on its reserves and the suspension of crypto lending operations by OTC platform Genesis Trading have raised concerns about the stability of the entire Digital Currency Group (DCG).

Last November 18, it became known Genesis Trading had failed to raise $1 billion in emergency financing by the morning of November 14. The request was submitted before the suspension of crypto lending operations after the collapse of FTX.

The day before, Nansen analysts discovered that Alameda Research had raised $1.6 billion in September 2021 from Genesis Trading secured by FTX utility tokens. The decline in the cost of the latter caused the insolvency of Sam Bankman-Fried’s companies.

The refusal of Galaxy Digital and Grayscale to support large prime broker Genesis Trading points to serious problems in the entire crypto ecosystem.