Justin Sun is reportedly eyeing the assets of Digital Currency Group (DCG), the parent company of embattled crypto broker Genesis and many other firms in the industry.
According to Reuters, the founder of blockchain network Tron (TRX) and advisor to crypto exchange Huobi is willing to allocate as much as $1 billion of his personal funds to purchase some of DCG’s assets “depending on their evaluation of the situation.”
Genesis halted customer withdrawals in November due to liquidity issues arising from the collapse of crypto firms Three Arrows Capital and FTX. The brokerage says it has $175 million worth of crypto derivatives locked into its FTX trading account.
As Genesis reportedly faces more than $3 billion in debt, its parent company DCG considers selling $500 million worth of its venture capital assets to raise funds.
The conglomerate has venture capital holdings in over 200 crypto-related projects, which include exchanges, banks and custodians. It also holds many crypto assets.
Sun, however, did not specify which DCG assets he is interested in buying.
News of the billionaire looking to acquire some of DCG’s holdings comes amid Huobi’s reported plans to lay off about 20% of its staff. Sun said the Seychelles-based exchange is expected to complete the dismissal by the end of the first quarter.
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