American cryptocurrency venture giant Digital Currency Group (DCG) has started selling holdings run by its subsidiary Grayscale Investments to payback creditors amid the ongoing bankruptcy of its lending arm, the Financial Times has learned, citing US securities filings.
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As per the report, DCG is dumping investments in one of its largest trusts at substantial discounts. Although details remain unclear, the report notes that DCG also sold shares in Grayscale Litecoin Trust, Bitcoin Cash Trust, Ethereum Classic Trust and Digital Large Cap Fund.
Besides the current sale, DCG is also considering selling parts of its portfolio holdings—such as exchanges, banks and custodians—worth around $500 million.
The move comes after reports said that Genesis and Digital Currency Group had reached an agreement on terms of a restructuring plan with a group of key creditors with claims of around $2.4 billion.
Under the agreement, Genesis will wind down its loan book and terminate the sale of its bankrupt entities. The deal also includes refinancing the outstanding loans worth $500 million in cash and about $100 million worth of bitcoin (EXANTE: Bitcoin) from Genesis.
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