Trading firm Genesis to get $140 million equity infusion from parent company DCG

Quick Take

  • Crypto trading firm Genesis will get a $140 million equity infusion from its parent company, the Digital Currency Group, according to a note sent to a counterparty.
  • The firm’s derivatives business currently has $175 million trapped on the FTX platform.

Digital Currency Group (DCG), the parent company of crypto trading firm Genesis,  is stepping in to provide a $140 million equity infusion to Genesis after it said that its derivatives business had $175 million locked up on the FTX platform.

The capital infusion will be used to strengthen Genesis's balance sheet and bolster its position in the crypto market, the firm said in a note sent to a counterparty, which was reviewed by The Block.

Genesis's operating capital isn't impacted and the net positions on FTX are not material, said Genesis on Thursday. It also has no ongoing lending relationships with FTX or sister firm Alameda Research, it said. This message was again reiterated in the note.

FTX filed for bankruptcy on Friday after facing a liquidity crunch as its FTT token cratered. A rescue deal with Binance fell through Wednesday after the rival exchange saw FTX's finances. 


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Genesis recently reshuffled its leadership team and laid off staff. Those changes appeared to be in direct response to high-profile losses related to defunct crypto hedge fund, Three Arrows Capital (3AC). It lent $2.36 billion to the hedge fund, DCG stepped in to take on the firm's liabilities and made a $1.2 billion claim against 3AC. 


Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Authors

Kari McMahon is a deals reporter at The Block covering startup fundraises, M&A, FinTech and the VC industry. Prior to joining The Block, Kari covered investing and crypto at Insider and worked as a python software developer for several years. For inquiries or tips, email [email protected]
Frank Chaparro is the Editor At Large at The Block. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. He runs his own podcast The Scoop and writes a biweekly eponymous newsletter. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected].


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