Digital Currency Group owed $575 million by Genesis Trading’s crypto lending arm By Reuters

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© Reuters. FILE PHOTO: Representations of virtual cryptocurrencies are placed on U.S. dollar banknotes in this illustration taken November 28, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) – Venture capital company Digital Currency Group, which owns Genesis Trading and cryptocurrency asset manager Grayscale, is owed $575 million by Genesis’ crypto lending arm, CEO Barry Silbert said in a letter to shareholders on Tuesday afternoon.

Loans from Genesis Global Capital, which suspended customer withdrawals last week, were used to “fund investment opportunities” and repurchase stock from non-employee shareholders, Silbert said in the letter, which was seen by Reuters. That debt is due in May 2023, he added.

Digital Currency Group’s only debt is a $350 million credit facility from “a small group of lenders” led by Eldridge.

The company is on pace to do $800 million in revenue this year, Silbert said.

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