Digital Currency Group, the crypto conglomerate which owns Genesis, the digital asset manager and crypto broker Genesis, is called Digital Currency Group (DCG). GrayscaleThursday’s confirmation by, that it will close HQ, its wealth management unit, was first reported by The Information.
“Due to the state of the broader economic environment and prolonged crypto winter presenting significant headwinds to the industry, we made the decision to wind down HQ, effective January 31, 2023,” a DCG spokesperson told Decrypt. “We’re proud of the work that the team has done and look forward to potentially revisiting the project in the future.”
This news comes on the same day Genesis made its announcement about a new product. Massive wave of layoffs—30% of its staff—as DCG and its subsidiaries reel from the contagion spread by crypto exchange FTX’s implosion in November.
According to December’s report, HQ managed capital for investors and crypto entrepreneurs. Information. The company’s partners were reportedly blindsided by the decision.
In November, as the crypto industry attempted to assess the extent of the seismic damage induced by FTX’s collapse, DCG CEO Barry Silbert Reassurance for investors Despite the fact that Genesis was its subsidiary, the company did not face imminent threats, it owed Genesis $575 millions. Genesis Withdrawals in the days following FTX’s bankruptcy due to liquidity issues, which have yet to resume.
Liquidity crunches may not be isolated to DCG’s subsidiaries. A creditor committee investigating Genesis’ financial woes intimated in December that DCG may be facing Its own liquidity problems. Bitvavo, a Dutch cryptocurrency exchange, claimed the same month that DCG owed it. Nearly $300 MillionWhich It appeared to be incapable of repaying. DCG retorted that the matter was Genesis’ liability, not DCG’s.
That fine line distinguishing DCG’s stability from the woes of its troubled subsidiaries appears to be fraying.
Cameron Winklevoss and Tyler Winklevoss were the founders of cryptocurrency exchange Gemini on Monday. wrote: blistering open letter to Barry Silbert on Monday, accusing DCG and Genesis of employing “bad-faith stall tactics” to avoid repaying their debts. Gemini users are reported to owe $900 million. The letter also claimed that DCG owes Gemini $1.675 Billion, which is significantly more than Silbert previously revealed.
Silbert replied by saying that the figure was incorrect, while maintaining that DCG is in a perfectly good financial position.
Thursday’s events may call that assertion further into question.
DCG owns the crypto news website, along with HQ, Genesis and Grayscale. CoinDeskFoundry, bitcoin mining advisory company Foundry, crypto trade platform Luno, as well as end-to–end crypto trading platform TradeBlock.