According to a report (1) by Reuters, Justin Sun, the founder of Tron, will spend as much as one billion dollars to acquire assets from Digital Currency Group (DCG), which is Genesis' parent company.
As stated in the article, the Chinese businessman indicated that "depending on their evaluation," he will be prepared to pay one billion dollars for DCG's assets. Sun did not provide any details regarding the assets of the struggling cryptocurrency company that he would be interested in buying.
It isn't the first time Sun has shown interest in purchasing the assets of a struggling company. When the FTX was having problems with its liquidity, the disgraced creator of the exchange, Sam Bankman-Fried, reached out to him for assistance.
Later, rumors began to circulate that Sun had expressed an interest in purchasing the assets of the failed exchange.
Misinformation Surrounding Sun
In the meantime, Justin Sun & entities connected to him have been forced to fight against a recent flood of Fear, uncertainty and doubt.
Following the decision to let go of 20% of its workforce, the crypto currency exchange Huobi, where Sun works as an adviser, was hit with large withdrawals one week ago. During that period, tales of turmoil within the company were flooding the cryptocurrency community like a flood.
The data later gathered by the blockchain analytical company Nansen revealed (2) that the exchange's weekly outflow had surpassed $100 million, placing it well ahead of other competitors.
In addition, Wu Blockchain noted significant confusion surrounding Sun's Tron blockchain. The writer claims that some over-the-counter traders in the Chinese market have stated that they will no longer take Tron-based USDT and have asked customers to convert their assets to Ethereum-based USDT before engaging in trade.
Recently, some OTC merchants in the Chinese market said that they no longer accept TRC20 USDT, and need users to go to the exchange to exchange for ERC20 USDT before trading. It is suspected to be related to the Justin Sun and TRON FUD spread by the community. Exclusive
— Wu Blockchain (@WuBlockchain) January 12, 2023
Problems with DCG's finances
In November, in response to the collapse of FTX, crypto currency lender Genesis halted customer withdrawals. Later reports indicated that the company owes its creditors about $3 billion. It was just announced that the company would be laying off thirty percent of its workforce, and there are rumors that the company may soon declare bankruptcy.
During this time, DCG and the cryptocurrency exchange Gemini have been fighting it out in the open. In an open letter dated January 10, the co-founder of the cryptocurrency exchange, Cameron Winklevoss, demanded that the CEO of the cryptocurrency company, Barry Silbert, be fired. On January 31, the company will take measures to reduce expenses by closing the headquarters of its wealth management division.
In addition, it has been disclosed in multiple stories that regulatory agencies are also looking into DCG's activities. The SEC has brought charges against Genesis and Gemini for selling unregistered securities.
