Barry Silbert Could Pocket $1 Billion in Personal Gains by Exploiting Bankruptcy System: Report
Barry Silbert, founder and CEO of crypto conglomerate Digital Currency Group (DCG), stands to potentially gain up to $1 billion through a sophisticated maneuver involving the bankruptcy system.
This comes in the wake of the collapse of Genesis, a crypto lending operation tied to DCG, which has left many investors facing significant losses, according to a report by New York Magazine .
Eric Asquith was one of the victims who ended in a nightmare scenario as his and his family’s savings of $1,052,000 vanished in the aftermath of Genesis’s bankruptcy declared on January 18, 2023.
Asquith had invested in GUSD, a stablecoin pegged to the dollar, through the Gemini platform, operated by Tyler and Cameron Winklevoss.
He was lured by the promise of a safe, stable investment offering returns far above those available from traditional banks.
However, the reality was different.
Unbeknownst to Asquith and other investors, their funds had been redirected to Genesis, a company under Silbert’s umbrella, and further loaned to high-risk ventures and hedge funds engaged in speculative bets.
This opaque financial arrangement crumbled with the bankruptcy of Genesis, part of a broader downturn that affected numerous crypto businesses, including the empire of Sam Bankman-Fried.
In February, Gemini announced that it reached a settlement in principle with Genesis, detailing a plan to distribute $1.8 billion to Earn users.
Furthermore, the crypto bull market of 2024 made it possible to pay back creditors not some fraction of what they invested but even higher, thanks to surging crypto prices.
This turn of events was hailed as a potential landmark in the recovery efforts following crypto-related collapses, with investors like
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