Key Points:
- Tron founder Justin Sun said he was willing to spend $1 billion to buy back DCG, which is in crisis.
- DCG is being hit hard by the collapse of FTX, which may cause its subsidiary to go bankrupt.
- TRON’s founder has previously wanted to buy back the assets of complex crypto companies.
Reuters reports that TRON founder Justin Sun intends to buy back the assets of struggling cryptocurrency company Digital Currency Group (DCG).
According to the information, Justin Sun is willing to spend up to $1 billion of his own money to buy back DCG’s salvageable assets but is “subject to an assessment of the actual situation.” But he still needs to reveal the list of properties he wants to buy back. However, Sun has confirmed the information.
DCG was in dire straits when Genesis company froze customer withdrawals in November and said it was trying to avoid filing for bankruptcy. According to a person familiar with the matter, it owes creditors more than $3 billion. DCG is also looking at offloading portions of that portfolio to raise money.
At the same time, it is not possible to determine the “wealth level” of the founder of Tron. However, estimates from 2021 show that DCG is valued at about 10 billion USD and manages assets of around $50 billion. Meanwhile, Justin Sun’s net worth ranges from $250 million to $3 billion, depending on how the estimate includes cryptocurrencies and traditional assets.
As was updated in the previous article, there are many rumors that Justin Sun is the actual owner of Huobi Global after it was acquired. However, the government repeatedly denied this information, and Sun is currently working as a global advisor for Huobi.
Huobi has also announced the layoff of 20% of its employees this week. In addition, some media outlets also reported that Huobi cut bonuses and employee benefits. Song Huobi has denied this rumor. The Korean branch was also surprised by the announcement of severing ties with Huobi Global and the decision to delist 33 tokens in one day.
But DCG is one of many troubled companies that Sun is interested in. He once planned to buy assets of FTX and Credit Suisse or Huobi by the end of 2022.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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