Justin Sun Eyes a $1 Billion Investment Opportunity in DCG Assets
Justin Sun, the renowned Chinese crypto entrepreneur now eyes Digital Currency Group (DCG) assets and he wants to spend a billion dollars on these. This comes after the company announced that they would be offloading some of their assets to repay creditors.
DCG is the parent company of the Genesis, a crypto lender that now owes its creditors about $3 billion. Since November 2022, the company stopped all customer withdrawals in a move taken to avoid filing for bankruptcy and give the company more time to raise capital. DCG now plans to sell part of their portfolio of more than 160 companies to raise cash, according to Financial Times. Among the companies on DCG’s portfolio is the crypto asset manager Grayscale.
Justin Sun hopes to take advantage of this opportunity and invest up to a billion dollars on DCG assets. He is not specific on the assets he is interested in. He also has not released any details on his wealth and what he plans to do with the portfolio from DCG. Sun has his wealth in traditional and digital currencies scattered in different investment portfolios.
Sun founded TRON, a blockchain network that placed him among the leaders in crypto. He also dabbles as an advisor for Huobi, a crypto exchange firm that recently announced plans to cut its staff back by 20%.
It is not the first time that a renowned crypto investor has promised to buy another firm’s assets when the firm’s financial health is under scrutiny. However, these deals end unsuccessful. When FTX was facing financial challenges and investor withdrawals, Binance made a deal to buy the non-US unit of the company. A day later, they canceled the deal. When FTX decided to seek funding, Justin Sun promised billions, according to Bloomberg, but that also did not materialize.