The renowned crypto-focused media publication
Coindesk has been acquired by Bullish, a company owned by the New York Stock
Exchange’s Former President, Tom Farley.
According to a report by the Wall Street Journal,
CoinDesk will operate as an autonomous subsidiary within Bullish under the
terms of the acquisition. It will maintain its distinct identity and editorial
integrity. Reportedly, this approach aims to preserve CoinDesk’s legacy while
enabling Bullish to inject capital into its expansion, particularly in media,
events, and indices.
Kevin Worth, CEO of CoinDesk, expressed enthusiasm
for the partnership, emphasizing the opportunities for development and
expansion in product offerings.
Bullish’s New Growth
In a statement shared with Businesswire, Worth said:
“With renewed momentum in the crypto economy as well as investment from
Bullish, we look forward to capitalizing on the many opportunities ahead for
product development and expansion.”
Since its launch, Bullish has established a niche in
institutional trading, boasting substantial trading volumes and technological
innovations. Recently, it introduced perpetual futures to diversify its
offerings within a regulated framework. The acquisition was facilitated by
financial advisors Lazard and Citi.
Meanwhile, the New York Attorney General recently charged Digital Currency Group (DCG), the parent company of Coindesk. The suit
alleged a fraudulent scheme that purportedly inflicted substantial financial
losses on a significant investor base, amounting to over $1 billion. NYAG
charged DCG alongside Gemini and Genesis.
Legal Hurdles Facing Coindesk’s Parent
The lawsuit, spearheaded by Attorney General Letitia James, accuses
these cryptocurrency behemoths of engaging in deceptive practices and
attempting to hide colossal losses, adversely affecting more than 230,000
investors. Gemini, known for its Earn program designed to generate profits by
lending assets, purportedly misled investors about the safety of its
collaboration with Genesis.
James asserted, “These cryptocurrency companies
lied to investors and tried to hide more than a billion dollars in losses, and
it was middle-class investors who suffered as a result.” The allegations
highlighted a discrepancy between promised safety and the actual risks
The lawsuit further alleges that Genesis and DCG
endeavored to mask losses exceeding $1.1 billion, ultimately burdening the
investor community. Genesis faced substantial losses from borrowers like Three
Arrows Capital and Babel Finance, with the former defaulting on significant
loans, triggering massive financial repercussions.
This article was written by Jared Kirui at www.financemagnates.com.