The folks at CoinDesk were simply too good at their jobs . The crypto intelligence internet site was the first to poke holes in Sam Bankman - Fried ’s crypto sandcastle that was FTX , but now the company who owns the crypto word site is reportedly exploring a sales event partially due to radioactive dust from Bankman - Fried ’s failed and allegedly fraudulent enterprise .
TheWall Street Journalfirst reported late Wednesday that CoinDesk and its parent company Digital Currency Group are considering putting the company up for sales event . Specifically , the account notes that CoinDesk has retained the investment banking firm Lazard to aid it search a partial or full sale of its company .
Gizmodo achieve out to CoinDesk for comment but lawyer representing the company did not immediately respond . CoinDesk chief operating officer Kevin Worth confirmed to the Journal that his website has receive multiple “ indications ” of involvement . DCG also did not at once react to a request for remark .
CoinDesk is reportedly mulling over a potential sale as its parent company Digital Commodities Group suffers the results of the FTX fallout, which was ironically first revealed by CoinDesk.Image: IgorGolovniov (Shutterstock)
WSJ compose ground on nameless sources intimate with internal discourse that DCG has encounter unsolicited go for the entire ship’s company for more than $ 200 million just in the last few months . This is even though DCG grease one’s palms CoinDesk for $ 500,000 back in 2016 , concord to those same nameless sources . CoinDesk made about $ 50 million in revenue last year .
But reporting from the family at CoinDesk has been integral to revealing the full musical scale of alleged fraud occurring at one of the world biggest crypto initiative . Back in November , CoinDesk ’s own Ian Allison first reported based on internal documents that Alameda Research , which was Bankman - Fried ’s hedging fund , relied hard on the FTX exchange ’s aboriginal FTT token . This was the first domino to fall in what would become an all new crypto calamity show the FTX beginner had been take user ’s funds out of his commutation and was funneling them into Alameda . Bankman - Fried is nowawaiting a federal trialover eight thrill of hoax and confederacy .
These events have created another crisis for the crypto industry at large , including at DCG . It has also bear upon web site that cover tech and crypto . CoinDesk leadership toldThe New York Timesthat their reporters are overcompensate DCG like any other crypto entity . Other sites like the fledgling news outlet Semafor have talked upselling investments Bankman - Fried and FTX made with the company .
DCG was once a $ 10 billion crypto - minded enterprise headline by major crypto investor Barry Silbert . The company possess several notable crypto - related companies other than CoinDesk , including Grayscale Investments , an investiture management ship’s company and manager of the Grayscale Bitcoin Trust , as well as the bitcoin mining company Foundry Digital . The trustingness ’s note value has plummeted 51 % in the retiring class , and its assets have gone from over $ 40 billion in 2021 to around 13.1 billion , harmonize toGrayscale ’s own metrics .
The group also owns the crypto loaner Genesis , which had to shut down redemptions and loans refer FTX ’s collapse . The loaner admitted back in November that it had $ 175 million in locked fund on FTX .
As part of our goal in providing transparence around this week ’s market events , the Genesis derivatives business presently has ~$175 M in locked monetary fund in our FTX trading account . This does not touch on our market place - make activities .
— Genesis ( @GenesisTrading)November 10 , 2022
Genesis was recentlycited by the Securities and Exchange Commissionfor allegedly sell unregistered security through its Genesis Earn Lending Program . Since the start of 2023 , the lendercut 30%of its stave in the second round of layoff in less than a twelvemonth . The ship’s company is also reportedly considering bankruptcy .
So yeah , things have not travel smoothly for DCG ’s properties , but CoinDesk is a grownup rationality for why that is . It ’s a shame that the masses creditworthy for showing just how rocky the entire crypto industriousness was — and proceed to be — now also have their jobs at hazard .
BitcoinCoinDeskCryptocurrenciesE - commerceGenesisSam Bankman-
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