$630M Due Next Week: Is DCG at Default Risk? - Ep. 489

Unchained

Laura Shin

News, Business News, Tech News

4.6 • 1.3K Ratings

🗓️ 5 May 2023

⏱️ 45 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

The Genesis bankruptcy is about to take a high-stakes turn with a $630 million payment from Digital Currency Group (DCG) due by May 11. Barry Silbert’s DCG, the parent company of Genesis, is on the hook for the massive payment, but doubts are swirling as to whether the crypto conglomerate can cover it. Lumida Wealth CEO Ram Ahluwalia joins the show to unpack what could happen to Genesis creditors, Gemini Earn users, and the markets should DCG fail to cover its debt obligations. Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, TuneIn, Amazon Music, or on your favorite podcast platform. Show highlights: whether DCG will be able to pay its debt to the Genesis bankruptcy estate the ways DCG can “plug the hole” what the likelihood of DCG filing for bankruptcy is how FTX’s intent to claw back $3.9 billion from Genesis would affect DCG whether Gemini Earn customers will be made whole why Ram says that asymmetric information has plagued the bankruptcy process whether the creditors should accept the latest term sheet how the Grayscale lawsuit against the SEC could impact DCG’s cash flow Thank you to our sponsors! Crypto.com Railgun DAO Stader Labs Guest Ram Ahluwalia, CEO & Founder of Lumida Wealth Previous appearances on Unchained: Genesis May Be Facing Bankruptcy. Could It Take DCG Down With It? Gemini vs. DCG Is Heating Up. Could Gemini Force Genesis Into Bankruptcy? How Will the FTX Collapse Affect Silvergate? A Bear and a Bull Debate How Is the Fed Going to Respond to the Banking Crisis? Links Unchained: FTX Moves to Claw Back $3.9 Billion From Genesis Reuters: Crypto group DCG says bankrupt unit Genesis' creditors renege on deal CoinDesk: Genesis Files for Mediator Assistance Over Amount of DCG Contribution to Reorganization DCG's CFO Steps Down as Crypto Conglomerate Repays $350M Loan Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hi, everyone. Welcome to Unchained, your no-hype resource for all things crypto. I'm your host,
0:09.6	Laura Shin, author of The Crypto Beans. I started covering crypto seven years ago and as a
0:14.7	senior editor Forbes was the first mainstream media reporter to cover cryptocurrency full-time.
0:19.6	This is the May 5, 2023 episode of Unchained.
0:23.2	Stater Labs is a multi-chain liquid-staking platform with 40k plus DeFi partnerships across
0:28.3	six chains. Soon they'll be coming to Ethereum with their LST-ETHX. Visit staterlabs.com slash
0:34.4	ETH to sign up for their ETHX alpha list. With the Crypto.com app, you can buy, trade, and spend
0:40.3	crypto in one place. Download and get $25 with the code Laura. Link in the description.
0:47.6	Ever wanted to use DeFi without being tracked? Railgun is a leading DeFi privacy solution on Ethereum,
0:53.7	BSE, Arbitram, and Polygon. Shield your funds and use them privately in your favorite DeFi apps
0:59.9	while Railgun's cutting-edge zero-knowledge system encrypts your data from public view.
1:04.8	Yes, that includes Dex Trading. Visit railgun.org or use the railway app at railway.xyz.
1:23.7	And trade luck at Probe. Crypto currencies are unregulated in the UK.
1:27.2	Profits may be subject to capital gains tax, and the value of crypto currencies can go down or up.
1:32.9	Today's best is Ram Alawalia, CEO and founder of Lumida Wealth. Welcome, Ram.
1:38.5	Thanks for having me, Laura. Good to see you again.
1:41.3	On April 25, DCG announced via a statement on Twitter that a subset of Genesis capital creditors
1:47.6	have walked away two months after what they call a comprehensive settlement was submitted
1:52.4	to the bankruptcy court. I spoke to a Genesis creditor who is in this group and they said they
1:57.2	felt that this was mischaracterized, that the two sides didn't have an agreement but just a framework
2:02.4	for what a deal could be. This person also said that this framework had been made with limited
2:08.5	financial information and that the group revised the terms based on new information and analysis.
	...

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