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Will DCG Insolvency Lead to Another Major Scandal?

Will DCG Insolvency Lead to Another Major Scandal?

Source: Coinglass How come this seemingly unassailable crypto giant is now publicly accused of not paying its debts?

Speaking of that, we must mention the two major crypto scandals in 2022. First, there was the fall of 3AC. Following the meltdown of LUNA and UST, 3AC also filed for bankruptcy, and the company also happened to be one of the many arbitrageurs. At the time 3AC owed Genesis about $2.36 billion after the market turned bearish and GBTC lost its premium advantage, a fact that remained unknown to the public until its liquidation.

As they say, it never rains but it pours. Before Genesis could fully recover from the 3AC bankruptcy, FTX went bust. The derivatives branch of Genesis not only owned $175 million in assets with FTX but also used SOL as one of the collaterals of the platform. Due to all kinds of factors, Genesis became trapped in a crisis.

Of course, there were feuds between the founders, but we won’t go into that. Right now, for most crypto investors, the top concern is whether DCG will also go bankrupt during the bear market. After all, as a GBTC creditor, DCG can apply for forced liquidation and then convert GBTC into BTC to cover its debt, and DCG’s fall is possible.

That said, no matter how it goes, eventually, investors are the ones who will have to bear the losses. Ponzi schemes are not the only factor behind the deleveraging last year. It also revealed that a number of crypto companies have misused user assets. Fortunately, following a series of events, the crypto market is becoming more open and transparent. Meanwhile, many first-rate crypto companies have stood out from the negative incidents.

CoinEx, a global crypto exchange that just celebrated its fifth birthday, is one of such outstanding players. Since its inception, the exchange has maintained a “zero-accident” record. Recently, CoinEx released its Merkel Tree proof (https://www.coinex.com/activity/market-maker) to help users clearly see the status of their assets, which significantly enhanced trust in CoinEx.

So far, the exchange has been recognized by over 4 million users in more than 200 countries and regions. We believe that the market will become more trustworthy as it goes through ups and downs. Meanwhile, CoinEx will earn more extensive user recognition with easy-to-use crypto trading products and services.

Disclaimer: This article offers no investment advice, and all statistics mentioned herein are for reference only. The information provided herein may not be relied upon for investment decisions, for which you will be fully liable.

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Source: Coinglass How come this seemingly unassailable crypto giant is now publicly accused of not paying its debts?

Speaking of that, we must mention the two major crypto scandals in 2022. First, there was the fall of 3AC. Following the meltdown of LUNA and UST, 3AC also filed for bankruptcy, and the company also happened to be one of the many arbitrageurs. At the time 3AC owed Genesis about $2.36 billion after the market turned bearish and GBTC lost its premium advantage, a fact that remained unknown to the public until its liquidation.

As they say, it never rains but it pours. Before Genesis could fully recover from the 3AC bankruptcy, FTX went bust. The derivatives branch of Genesis not only owned $175 million in assets with FTX but also used SOL as one of the collaterals of the platform. Due to all kinds of factors, Genesis became trapped in a crisis.

Of course, there were feuds between the founders, but we won’t go into that. Right now, for most crypto investors, the top concern is whether DCG will also go bankrupt during the bear market. After all, as a GBTC creditor, DCG can apply for forced liquidation and then convert GBTC into BTC to cover its debt, and DCG’s fall is possible.

That said, no matter how it goes, eventually, investors are the ones who will have to bear the losses. Ponzi schemes are not the only factor behind the deleveraging last year. It also revealed that a number of crypto companies have misused user assets. Fortunately, following a series of events, the crypto market is becoming more open and transparent. Meanwhile, many first-rate crypto companies have stood out from the negative incidents.

CoinEx, a global crypto exchange that just celebrated its fifth birthday, is one of such outstanding players. Since its inception, the exchange has maintained a “zero-accident” record. Recently, CoinEx released its Merkel Tree proof (https://www.coinex.com/activity/market-maker) to help users clearly see the status of their assets, which significantly enhanced trust in CoinEx.

So far, the exchange has been recognized by over 4 million users in more than 200 countries and regions. We believe that the market will become more trustworthy as it goes through ups and downs. Meanwhile, CoinEx will earn more extensive user recognition with easy-to-use crypto trading products and services.

Disclaimer: This article offers no investment advice, and all statistics mentioned herein are for reference only. The information provided herein may not be relied upon for investment decisions, for which you will be fully liable.

2