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Digital Currency Group (DCG) announced that they have chosen Mark Shifke to be their new chief financial officer (CFO).
Digital Currency Group (DCG) is close to reaching a settlement with Genesis, its subsidiary’s creditors, as reported by Bloomberg on July 31.
In DCG’s second-quarter shareholder letter released on the same day, they mentioned making significant progress in negotiations to resolve the claims in the Genesis Capital Chapter 11 cases. The company is optimistic about bringing these cases to a close soon and will provide updates as the claim resolution process moves forward.
DCG Reports Revenue Growth but Records Loss in Q2:
Regarding financials, DCG reported $216 million in revenue for the second quarter, showing a 17% increase in sequential revenue growth. However, the company also incurred a consolidated quarterly loss of about $79 million. The loss was mainly due to a one-time counterparty default at Genesis, which cost $113 million.
As part of the developments, DCG appointed Mark Shifke as its new CFO. Shifke has a background in the fintech industry, having held executive roles in companies like Billtrust and Green Dot, as well as traditional financial firms like JP Morgan and Goldman Sachs. He is relatively new to the cryptocurrency industry.
Genesis Commences Bankruptcy in Early 2023:
Genesis Global Holdco’s lending arm, a subsidiary of DCG, filed for bankruptcy protection on January 19, 2023, stating a debt of $3.5 billion owed to its 50 largest creditors. The bankruptcy proceedings are still ongoing and have significantly impacted Gemini, a crypto exchange that collaborated with Genesis to offer an interest-bearing “Earn” product. Gemini is now one of Genesis’ largest creditors and expressed frustration with a deal expected to close in mid-July.
In early July, Gemini filed a lawsuit against DCG and its CEO, Barry Silbert, accusing them of “fraud and deception.” DCG has denied any wrongdoing.
On the other hand, Genesis reached an agreement with another creditor, the defunct crypto exchange FTX, as per court filings on July 27. The situation remains complex, with ongoing legal actions and negotiations.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
