Cryptocurrency conglomerate Digital Currency Group (DCG) has reportedly shuttered its wealth management unit, dubbed “HQ”, according to CoinDesk, a DCG-owned news source. Friday.
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The Key Points
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DCG announced the closure of the division due to worries about the “state of the broader economic environment and the prolonged crypto winter that presents significant hurdles for the industry,” according to a company statement quoted by a media report.
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The Information reported Thursday that the division held assets worth more than $3.5 Billion.
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DCG’s brokerage affiliate, wholly-owned by DCG Genesis Global Trading, has also undergone a 30% reduction in staff in order to remain afloat, in addition to a 20% layoff last August. CoinDesk is not related to this.
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Genesis and its parent company, which also includes crypto-asset manager Grayscale and mining company Foundry, has attracted attention due to debt issues expected to surface in 2022. Three Arrows Capital is also being affected.
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DCG stated in a November letter to shareholders that it owed $575 million in loan and $1.1 billion note to Genesis Global Capital, the lending arm of Genesis Global Trading.
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Genesis Global Capital stopped amortization and origination of new loan loans November.
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DCG did not immediately respond to a request for comment By Forkast
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