HomeBitcoinGrayscale in danger - where are the 634,000 bitcoins ?

Grayscale in danger – where are the 634,000 bitcoins ?


As a result of the chain reaction started by former CEO Sam Bankman-Fried, the collapse of FTX has spread, and now more large crypto ventures are now in danger of going bankrupt.

The Grayscale Bitcoin Trust (GBTC), the largest institutional crypto investment vehicle, has recently come under the limelight after it was discovered that cryptocurrency platform Genesis Global was also having financial issues and had stopped processing payments.

A significant source of liquidity for the Grayscale Bitcoin Trust is Genesis Global. The Digital Currency Group, the parent company of both Genesis and Grayscale, As a result, Grayscale is probably going to suffer from Genesis’ financial difficulties.

Since just 80,000 BTC were involved when Terra fell, the impact would be higher if the Grayscale Bitcoin Trust’s current holdings of 634,000 BTC were liquidated for cash.

Genesis is not a service provider for any Grayscale products, according to the DCG, and recent events have no impact on how business is conducted.

Similar remarks on FTX were made a few days ago.

Ryan Selkis, founder and CEO of cryptanalysis firm Messari, said DCG’s cash was lower than its debt.

In the interim, it is reasonable to question whether Grayscale actually owns 634,000 BTC. There is only a CSV file that is updated once per day; there is no actual proof.


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