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LONDON (Reuters) – Chinese cryptocurrency entrepreneur Justin Sun has announced a plan to buy assets in Digital Currency Group (DCG), the parent company of beleaguered crypto lender Genesis. Sun told Reuters he was prepared to spend $1 billion of his own money.
Genesis said in November it was trying to freeze customer withdrawals and avoid filing for bankruptcy.
DCG, owner of Genesis, is also the parent company of several prominent crypto companies, including crypto asset manager Grayscale, and its website lists over 160 companies in its venture capital portfolio. DCG is considering offloading part of its portfolio for funding, the Financial Times reported Thursday.
In an interview with Reuters, Sun said it was willing to spend up to $1 billion to buy some of DCG’s assets “depending on their assessment of the situation.”
Sun did not identify the assets it is considering purchasing.
His spokesperson declined to provide details of Sun’s wealth, but said it consisted of virtual and traditional currencies.
Digital Currency Group declined to comment.
Sun is the founder of a blockchain network called TRON and is also an adviser to cryptocurrency exchange Huobi, which last week announced plans to lay off about 20% of its workforce.
Prominent cryptocurrency players have publicly expressed interest in purchasing other companies and their assets in the past, but such transactions would be prohibited if there were market concerns about the financial health of those companies. is not always realized.
When major crypto exchange FTX faced a flood of investor withdrawals in November, Binance said it had signed a non-binding agreement to purchase FTX’s non-U.S. units. The next day, Binance said it had canceled the plan after conducting due diligence.
When FTX called for emergency funding, Bloomberg reported that Sun said it was ready to provide “billions of dollars” in aid. Nor did the transaction take place.
Reporting by Elizabeth Howcroft Editing by Tomasz Janowski
Our standards: Thomson Reuters Trust Principles.
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