. Many industry observers cited the report as the catalyst for the downfall of Alameda and Bankman-Fried's crypto exchange FTX, which filed for bankruptcy less than two weeks later.Genesis Trading was originally the bitcoin trading division at DCG Chief Executive Barry Silbert's SecondMarket, but re-launched with its new name as a subsidiary of DCG when Silbert started the venture firm in 2015.
DCG itself owes $1.68 billion to Genesis' crypto lending arm, according to a November letter Silbert sent to shareholders. That includes a $1.1 billion promissory note that appears to be connected with liabilities DCG assumed from Genesis after it was hit hard by the collapse of Singapore-based crypto hedge fund Three Arrows Capital.Silbert started Grayscale Investments in 2013 after he stepped down as CEO of SecondMarket.
That 1.1 billion promissory note from DCG is definitely “sound money”