Troubled crypto lender Genesis Global has outstanding loans of $2.8 billion on its balance sheet, with around 30% of lending made to related parties, including parent company Digital Currency Group, Bloomberg reported Tuesday, citing people familiar with the matter. The Block reported that in a note to shareholders, Digital Currency Group founder and CEO Barry Silbert said that in the “ordinary course of business, DCG has borrowed money from Genesis Global Capital in the same vein as hundreds of crypto investment firms. These loans were always structured on an arm’s length basis and priced at prevailing market interest rates.” Silbert said DGC currently has a liability to Genesis of around $575 million, due in May 2023 and that the loans were used to “fund investment opportunities and to repurchase DGC stock from non-employee shareholders in secondary transactions previously highlighted in quarterly shareholder updates.” Silbert did not immediately return a request for comment from MarketWatch.
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