2023–present
By early 2023, DCG had over 160 companies in its portfolio. Subsidiaries included the crypto exchange Luno, and the firm Foundry for crypto mining. It was also an early investor in Coinbase and Kraken, the firm Circle behind the stablecoin USDC, and the analytics companies Chainalysis, Dune Analytics, Elliptic, and Etherscan.[10] In response to growing dispute with shareholders, Barry Silbert in early 2023 argued against debtor Cameron Winklevoss' push to replace him as CEO.[11]
In January 2023, the Financial Times reported that DCG was considering selling parts of its venture capital holdings to raise funds.[12]
On January 19, 2023, Genesis Global Capital filed for Chapter 11 bankruptcy protection, citing over 100,000 creditors and liabilities of between $1 billion and $10 billion. In February 2023, DCG struck a deal with creditors to either sell its Genesis unit or turn its equity over to creditors. Specifically, on February 6, 2023, Genesis Global Holdco announced a possible agreement with its creditors and DCG, wherein DCG would give its equity interest in Genesis Global Trading (GGT) to Genesis Global Holdco. DCG would also refinance its loans from Genesis and exchange its existing $1.1 billion promissory note for convertible preferred stock issued by DCG.[13][14] However, in April, some creditors walked away from the restructuring agreement.[15]
In mid-May 2023, it was reported that DCG had missed a $630 million payment to Genesis, while owing the company $1.65 billion.[16][17] In January 2024, DCG completed payment of these short-term loans to Genesis.[18]
DCG stated that "due to the state of the broader economy and prolonged crypto winter, along with the challenging regulatory environment for digital assets in the U.S," it shut down TradeBlock, an institutional trading platform, on May 31, 2023.[19][20] At that time, Luno was still owned by DCG.[21] In July 2023, it was reported that DCG would sell CoinDesk for $125 million. At the time, DCG had closed HQ, its wealth management unit.[22] With Barry Silbert remaining CEO, in July 2023, DCG appointed Mark Shifke as its CFO.[23]
In July 2023, DCG's crypto lending arm Genesis Global was still undergoing bankruptcy proceedings.[22] In July 2023, Gemini sued DCG in New York, citing fraud, with the intent of reclaiming funds.[24] In August 2023 DCG reportedly faced an unannounced probe by the New York Attorney General, who was seeking information related to the financial dealings of DCG's subsidiary Genesis.[25]
A new Chapter 11 deal was agreed on with DCG and lender Genesis Global, as well as a major creditor group, in late August 2023.[26][27] The agreement involved paying out up to 90% of the amount owed to Genesis customers using new loans.[28]
In October 2023, the New York attorney general filed a lawsuit against DCG, Gemini Trust, and Genesis Capital for allegedly defrauding more than 230,000 investors of more than $1.1 billion. The companies allegedly lied to investors about the expected returns on their investments and regarding their safety, while also concealing losses from them and the public. DCG replied that they would fight the claims, and that they were “shocked by the baseless allegations.”[29][30] The bankruptcy proceedings continued until May 2024, when the US Bankruptcy Court for the Southern District of New York Court formally approved the finalized Genesis bankruptcy restructuring plan. Genesis' restructuring was completed in August 2024, and it began distributions valued on an in-kind basis to creditors of around $4 billion.[31]
