According to a Reuters report, Justin Sun could spend $1 billion of his funds to buy assets belonging to the digital currency group. January 13th.
Sun told the media company that the money could be used to purchase some of DCG’s assets “subject to an assessment of the situation.”
Reuters was unable to determine the extent of Sun’s wealth. However, estimates from 2021 put DCG at a valuation of around $10 billion, with assets under management topping his $50 billion. Meanwhile, estimates place Sun’s net worth between $250 million and $3 billion, depending on whether both virtual and traditional assets are included. As such, any transaction may involve only a small portion of his DCG assets.
Reuters was unable to identify the assets Sun is considering purchasing, and the Digital Currency Group has said nothing on the matter.
Entities associated with both Sun and DCG face challenges. DCG subsidiary Genesis announced earlier this month that it was laying off his 30% of its workforce, citing market conditions. Last year, Genesis suspended customer withdrawals at both its lending service and Gemini’s partner service, Earn. It reportedly owes clients more than $3 billion.
Huobi, an Asia-based cryptocurrency exchange advised by Sun, announced this week that it will lay off 20% of its staff. The exchange’s problems appear to be limited to labor costs as the company continues to serve its customers.
DCG wasn’t the first troubled company Sun took an interest in. He also plans to buy assets belonging to FTX and Credit Suisse in late 2022.
Sun is best known as the founder and former CEO of TRON, but has no official leadership role in its blockchain project.