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 under Bullish. 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 in media, events, and indices.
Bullish's New Growth Trajectory
In a statement shared with Businesswire, Kevin Worth, the CEO of CoinDesk, 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 ininstitutional trading, boasting substantial trading volumes. Recently, the company introduced perpetual futures to diversify its offerings within a regulated framework. Its acquisition of CoinDesk 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 judicial action professed a fraudulent scheme that purportedly inflicted substantial financial losses on a significant investor base, amounting to over $1 billion. The NYAG charged DCG alongside Gemini and Genesis.
Legal Hurdles Facing CoinDesk's Parent Company
The lawsuit, brought by Attorney General Letitia James, accused these cryptocurrency giants of engaging in deceptive practices and attempting to hide huge amounts of losses, which affected more than 230,000 investors. Gemini, through its Earn program, allegedly 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 investors face.
Furthermore, the legal proceedings purported that Genesis and DCG endeavored to hide 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.
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