Genesis parent’s investor GIC expects volatility in investments

Singapore sovereign wealth fund GIC, an investor in troubled crypto broker Genesis’ parent firm, said it expects high volatility in investments in the short term, The Straits Times reported.

Besides Genesis, Digital Currency Group (DCG) also owns crypto news site CoinDesk and asset manager Grayscale Investments.

In November last year, DCG raised US$700 million from investors including SoftBank, Google’s Capital G, Ribbit Capital, and GIC.

Bloomberg reported that Genesis was struggling to raise fresh funding for its lending unit to deal with a liquidity crunch after the collapse of crypto exchange FTX. Genesis is said to be seeking at least US$1 billion in new capital.

The crypto firm is also warning potential investors that it may need to file for bankruptcy protection if it fails to secure fresh funding.

“We have no plans to file bankruptcy imminently,” a Genesis representative told Bloomberg. “Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors.”

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