LONDON, Jan 13 (Reuters) – Chinese crypto business owner Justin Sun wants to invest $1 billion of his own funds on purchasing properties coming from Digital Currency Group (DCG), the moms and dad business of embattled crypto lending institution Genesis, Sun informed Reuters.
Genesis froze consumer withdrawals in November and stated it was attempting to prevent a personal bankruptcy filing. It owes its financial institutions more than $3 billion, according to an individual acquainted with the matter.
Genesis’ owner, DCG, is likewise the moms and dad business of a number of prominent crypto companies, consisting of crypto property supervisor Grayscale, and its site notes more than 160 business in its equity capital portfolio. DCG is thinking about unloading parts of that portfolio to raise money, the Financial Times reported on Thursday.
Sun informed Reuters in an interview he would want to invest as much as $1 billion to purchase a few of DCG’s properties, “depending upon their assessment of the scenario”.
Sun did not define which properties he was thinking about purchasing.
His representative did not divulge information of Sun’s wealth, however stated it included crypto and conventional currencies.
Digital Currency Group decreased to comment.
Sun is the creator of a blockchain network called TRON and a consultant to the crypto exchange Huobi, which recently revealed strategies to lay off about 20% of its staff.
Prominent crypto gamers have in the past openly revealed interest in purchasing other companies or their properties when there were market issues about those companies’ monetary health, however such offers do not always emerge.
When significant crypto exchange FTX dealt with a rush of financier withdrawals in November, Binance stated it had actually signed a no-nbinding contract to purchase FTX’s non-U.S. system. A day later on Binance stated it dropped the strategy after doing due diligence.
As FTX looked for emergency situation financing, Bloomberg reported that Sun stated he was prepared to supply “billions” in help. That offer likewise did not occur.
Reporting by Elizabeth Howcroft
Modifying by Tomasz Janowski
Our Standards: The Thomson Reuters Trust Concepts.
