During the European session, Bitcoin continued to trade sideways, but overall the trading bias remained positive above the triple bottom support area of the $15,800 level. Digital Currency Group (DCG), a key player in the cryptocurrency sector, announced Monday that it is the parent company of several well-known companies, including Genesis and Grayscale.
Genesis is the only full-service prime broker in the cryptocurrency market and has been a treasure in DCG's portfolio.
The company is critical in providing access and risk management to large institutions. When DCG rescued it, it was already in trouble due to the bankruptcy of Three Arrows Capital (3AC). 3AC currently owes the parent company $1.2 billion.
Genesis announced last week that it would suspend payments for its Genesis Earn initiative. It was revealed that the company will require a $1 billion capital infusion by today, November 21.
According to rumors, Grayscale may struggle if Genesis is unable to secure this sum from outside supporters.
One of the primary sources for the current rumors is Andrew Parish, co-founder of ArchPublic. In a tweet on November 20, he claimed that Genesis has "zero interested parties." The Grayscale Bitcoin Trust now holds 634,000 BTC, which could be sold, putting tremendous pressure on the BTC/USD price.
According to a bankruptcy court filing dated November 19, the bankrupt exchange, FTX, owes a total of $3.1 billion to its 50 largest creditors. The debtors were described as customers in the petition, but their names were not given.
On November 20, FTX's new management team reminded other cryptocurrency exchanges to be on the lookout for assets stolen from its platform.
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