DCG CEO Letter to Shareholders: Borrowed $1.1 billion from Genesis, promissory note due in 2032

2023-01-11 07:53:42

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ChainCatcher news, according to CoinDesk, DCG CEO Barry Silbert disclosed the debt issues of its subsidiaries in a recent letter to shareholders: DCG has an $1.1 billion promissory note due in 2032, and owes its subsidiary $447.5 million in cash, plus 4,550 bitcoins (worth about $78 million), which were borrowed at an interest rate of 10% to 12% between January 2022 and May 2022.

Silbert explained that each wholly-owned subsidiary of DCG has its own bank accounts, securities accounts, and crypto accounts, and maintains individual separate books and records, with no issues of fund commingling. These loans were made on a fair trading basis and priced at current market rates. Regarding DCG's role in Genesis's attempt to restructure, Silbert stated, "Due to the outstanding loans and promissory notes that DCG owes to Genesis, DCG executives (including members of the Genesis board) have no decision-making authority in this matter."

Earlier yesterday, Gemini co-founder Cameron Winklevoss publicly called for the DCG board to remove CEO Silbert. (CoinDesk)

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DCG Genesis Gemini

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