BITVAVO EXCHANGE INITIALLY SOUNDED THE ALARM

Digital Currency Group (DCG) one of the largest cryptocurrency companies is currently experiencing severe liquidity issues. According to the financial times, DCG owns is creditors not less the 3 billion dollars and it's seriously out of cash. As almost all of you will know that DCG's troubles began after Genesis trading one of its subsidiaries closed its doors due to the collapse of FTX. This forced the Gemini cryptocurrency exchange to pause withdrawal for users of Gemini and which has given 900 million dollars to Genesis. Although it was initially believed that the contagion was limited to Genesis Dutch cryptocurrency exchange called Bitvavo initially sounded the alarm in December that DCG is experiencing liquidity issues too.

Bitvavo recently demanded that DCG repay the full 300 million dollars it owns the exchange. A the same time Gemini co-founder Cameron Winklevoss has gone on the offensive demanding that DCG CEO Barry Silbert get his company asset sorted out and repay the 900 million dollars. Cameron recently demanded that Barry resign but this is unlikely to happen given that Barry is a restructuring expert. Cameron also attracted the attention of the SEC which has now charged Gemini and Genesis for selling unregistered securities.

Digital Currency Group is now reportedly planning on selling $500 million of assets in its VC portfolio. This is very scary because DCG has invested in almost cryptocurrency companies and a project that comes to mind. The list includes Coinbase, Polygon, Circle, and even crypto builders like Polkadot Parachain. Not only that, but it seems DCG is also planning to sell even more to make earn means. This is because Tron founder Justin Sun is reported prepared to offer up to one billion dollars in DCG assets. You should know that Justin Sun is interested in buying Grayscale, Digital Currency Group's current money-making machine. This makes sense given Grayscale's two largest trusts alone are generating 30 million dollars per month in fees according to the block. When the crypto market was picking, Grayscale trust companies earned the company almost $100 million per month.

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