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DCG Responds to Genesis Bankruptcy; Bitcoin Jumps 4% As Contagion Fears Lessen

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Digital Currency Group, the parent company of both Genesis and Grayscale, released a statement on Jan. 20 commenting on the news that Genesis had filed for Chapter 11 bankruptcy.

Following the statement’s release, Bitcoin climbed above $21,000 to a year-to-date high of $21,912.

The fate of DCG has been assessed as a significant potential catalyst for further downside to the current crypto bear market. However, it appears that DCG’s statement has alleviated fears of an impending Bitcoin crash due to DCG potentially liquidating assets.

DCG confirmed that there is a clear separation between DCG and Genesis.

“Genesis has its own independent management team, legal counsel, and financial advisors, and appointed a special committee of independent directors, who are in charge of the Genesis Capital restructuring.”

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