{"id":9111,"date":"2022-12-12T00:59:56","date_gmt":"2022-12-12T00:59:56","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=9111"},"modified":"2022-12-12T00:59:57","modified_gmt":"2022-12-12T00:59:57","slug":"genesis-liquidation-could-force-dcg-bankruptcy","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=9111","title":{"rendered":"Genesis liquidation could force DCG bankruptcy"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n   <\/p>\n<p>Haseeb Qureshi, the Managing Partner at Dragonfly Capital, discussed the potential consequences of Genesis going into liquidation on a recent episode of Unchained\u2019s \u201cThe Chopping Block.\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">1\/ On a recent episode of Unchained&#8217;s The Chopping Block, @hosseeb makes a surprising comment about the $1.1 billion DCG-Genesis promissory note.<\/p>\n<p>He says the 10 year note may have been structured as &#8220;callable&#8221; in the event of a Genesis liquidation.<\/p>\n<p>Here&#8217;s what that would mean:<\/p>\n<p>\u2014 Ryan Selkis \ud83e\udd77 (@twobitidiot) December 11, 2022<\/p>\n<p>Discussed on the Dec. 3 episode of Unchained\u2019s \u2018The Chopping Block,\u2019 Qureshi said:<\/p>\n<p>\u201cIt looks like there was a lot of funny busy in the accounting at genesis very very high level\u201d<\/p>\n<p>According to Qureshi, the Digital Currency Group\u2019s (DCG) $1.1 billion promissory note to Genesis could be \u201ccallable\u201d in the event of liquidation, requiring DCG to pay the total value of the note immediately.<\/p>\n<p>Qureshi also discussed DCG\u2019s buy-out of Genesis\u2019s \u201cbad debt\u201d in Three Arrows Capital (3AC), reported to be around $2.1 billion.<\/p>\n<p>However, Qureshi noted that:<\/p>\n<p>\u201cDCG does not have $2.1B in cash to pay the value of the promissory note\u201d<\/p>\n<p lang=\"en\" dir=\"ltr\">3\/ It would also do two other things:<\/p>\n<p>+ significantly reduce DCG&#8217;s ability to limit liability from a Genesis bankruptcy. a callable promissory note would basically be a &#8220;you break it, you buy it&#8221; situation<br \/>+ reduce Genesis&#8217;s urgency to file bankruptcy as they &#8220;have the assets&#8221;<\/p>\n<p>\u2014 Ryan Selkis \ud83e\udd77 (@twobitidiot) December 11, 2022<\/p>\n<p>Qureshi discussed two potential scenarios in the event of Genesis going into liquidation.<\/p>\n<p>The first scenario is that \u201cGenesis files [for bankruptcy] and then pulls DCG into bankruptcy,\u201d entering a complex bankruptcy procedure.<\/p>\n<p>The second scenario is that \u201cGenesis goes under, and then the note is itself auctioned off at a value less than par,\u201d but somehow, DCG is prevented from going under.<\/p>\n<p>Qureshi concluded by explaining that \u201cit looks very, very likely\u201d that genesis will have to file for bankruptcy or go through a restructuring where creditors would have to agree to reduce claims at Genesis to avoid bankruptcy.<\/p>\n<p>\u201cThe bankruptcy would be so deleterious to creditors to Genesis\u201d<\/p>\n<p>Robert Leshner, founder of Compound and creditor to Genesis, discussed Genesis being pushed into bankruptcy involuntarily.<\/p>\n<p>Leshner highlighted the potential consequences and implications of such a scenario and detailed his expectations of Genesis filing for bankruptcy:<\/p>\n<p>\u201cAny number of creditors could push them into bankruptcy [\u2026] I think the odds are high, like 80 percent\u201d<\/p>\n<p>Posted In: Bankruptcy, Investments<\/p>\n<h3>Read Our Latest Market Report<\/h3>\n<h2>Get an Edge on the Crypto Market \ud83d\udc47<\/h2>\n<p>Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/genesis-liquidation-could-force-dcg-bankruptcy-the-chopping-block-reports\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Haseeb Qureshi, the Managing Partner at Dragonfly Capital, discussed the potential consequences of Genesis going into liquidation on a recent episode of Unchained\u2019s \u201cThe Chopping Block.\u201d 1\/ On a recent episode of Unchained&#8217;s The Chopping Block, @hosseeb makes a surprising comment about the $1.1 billion DCG-Genesis promissory note. He says the 10 year note may [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9112,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-9111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9111"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9111\/revisions"}],"predecessor-version":[{"id":9113,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9111\/revisions\/9113"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/9112"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}