Main navigation

Is Barry Silbert’s Crypto Empire in Danger? Genesis Allegedly Fails to Secure Funding

Sun, 11/20/2022 - 09:01
article image
Alex Dovbnya
Barry Silbert’s cryptocurrency empire appears to be in big trouble, with Genesis failing to secure much-needed funding
Is Barry Silbert’s Crypto Empire in Danger? Genesis Allegedly Fails to Secure Funding
Cover image via
Read U.TODAY on
Google News

There is plenty of speculation surrounding the health of Digital Currency Group, the cryptocurrency empire created by early Bitcoin investor Barry Silbert.    

As reported by U.Today, the lending arm of Genesis abruptly halted withdrawals on Nov. 16. The Wall Street Journal reported that Genesis was seeking a $1 billion bailout from various investors without any success. Rumor has it that Mike Novogratz and The Winklevii refused to rescue the firm.   

EZPR CEO Ed Zitron claims that people are “massively underestimating” how bad things could get for the cryptocurrency industry if Genesis Digital capital goes underwater given that this is the largest lender in crypto. 

Ripple Intends to Buy FTX's Assets

Grayscale, another subsidiary of the DCG empire, recently declined to share proof of reserves due to “security concerns.” Crypto firms are under pressure to publicly share their reserve information following the collapse of the FTX exchange which caught a lot of investors off guard. 

Grayscale Bitcoin Trust (GBTC), the crown jewel of Grayscale, recently reached its all-time low discount of more than 40%. 

Earlier this week, Bloomberg reported that Silbert’s crypto empire “started showing its cracks.”  

Mario Nawfal, the founder of IBC Group, argues that Genesis’s potential downfall could be potentially bigger than that of the FTX exchange. 

At press time, Bitcoin is trading at the $16,600 level on major spot exchanges. It is currently down 75.79% from its record high. 

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at