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CoinDesk may be in deep trouble after NYT report

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Legislation Regulation generic 3 1

On Jan 16th, 2023, The New York Times reported that CoinDesk, the company that broke the news that led to FTX filing for bankruptcy, is also in trouble.

Operations and the financial standing of several of its parent company subsidiaries are under scrutiny

CoinDesk parent company faces federal investigation

The CoinDesk parent company, Digital Currency Group, invests in several cryptocurrency initiatives. However, it is currently having financial and operational issues.

Genesis, a DCG-owned Bitcoin lender, fired 30% of its workforce at the beginning of the year. Federal authorities also accuse Genesis of selling unregistered securities through a scheme that offered investors a high-interest rate. 

The federal officials claimed that Gemini Trust and Genesis raised billions of dollars from thousands of investors without registering the program.

CoinDesk reporting about the parent company

The events happening to their parent company have compelled CoinDesk to write extensively about its owners. CoinDesk has also been reporting on associated events that have been happening over the last few weeks.

Michael Casey, CoinDesk’s chief content officer, wrote in his statement to The New York Times that it covered DCG similarly to all other companies in the crypto space.

Amanda Cowie, the head of communications at Digital Currency Group, declined to comment on the probe. She, however, stated that their firm was not involved in CoinDesk’s editorial decisions. She confirmed that the media outlet needed to run independently for the good of the industry.

Mr. Casey affirmed that their company’s dedication is to creating a long-lasting media organization that covers the crypto industry without discrimination. 

CoinDesk has consistently covered DCG, the federal investigation, and the laying offs at Genesis. It has also been persistent in covering disagreements between Cameron Winklevoss, the co-founder of Gemini, and Barry Silbert, CEO of DCG.

CoinDesk on FTX

CoinDesk company published a scoop on FTX suggesting that its sister company, Alameda research, could be in financial problems. What followed was a series of concerns. A week later, Alameda and FTX filed for bankruptcy, and Bankman Fried is now facing federal fraud charges.

The company was one of the first news sites to focus on reporting on cryptocurrency. The company began its operations in 2013, and by 2017, it had only 10 employees. The company grew exponentially with the crypto boom of 2021 and has over 160 employees worldwide.

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