Justin Sun plans to buy DCG assets for $1 billion

Tron founder Justin Sun plans to spend up to $1 billion to acquire the assets of Genesis parent company Digital Currency Group (DCG), according to Reuters reports.

The Chinese entrepreneur says he is willing to spend $1 billion on DCG assets, depending on their valuation. Sun did not specify what exactly he wants to acquire.

This isn’t the first time the Tron founder has taken an interest in the troubled firm. Previously, he announced the possibility of buying the assets of the bankrupt FTX exchange.

Rumors surrounding Sun-related companies

Last week, crypto exchange Huobi, of which Sun is an advisor, faced a massive withdrawal after deciding to lay off 20% of its employees. Nansen data showed weekly churn exceeded $100 million.

There are also many rumors surrounding the Tron blockchain. According to Colin Wu, some OTC companies in the Chinese market have stated that they no longer accept Tron-based USDT because the blockchain does not comply with anti-money laundering requirements.

DCG financial troubles

In November, DCG subsidiary Genesis halted withdrawals of client funds due to the collapse of FTX. Later it became known that the company owes about $3 billion to its creditors. Genesis recently fired 30% of its employees – there are suggestions that it may file for bankruptcy.

Meanwhile, Digital Currency Group and Gemini have entered into a public spat: In an open letter dated January 10, exchange co-founder Cameron Winklevoss called for the dismissal of cryptocurrency conglomerate CEO Barry Silbert.

Financial regulators have also stepped up and launched an investigation into DCG. The SEC recently charged Genesis and Gemini with an unregistered sale of securities.

Source: CryptoNewsHerald.com

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