According to reports from crypto and finance publications, Digital Currency Group (DCG) A shareholder letter was seen in which the company has ceased dividend payments until further notice. This News follows the US Securities Exchange Commission (SEC) Accusing DCG of being a subsidiary of Genesis Global Capital, operating an “unregistered offering and sale of securities to retail investors.”
DCG Suspends Dividend Distribution to Increase Balance Sheet
On January 17, 2023, Coindesk reporter Ian Allison published an article revealing that Digital Currency Group (DCG) has temporarily suspended dividend payments. It It is worth noting Coindesk is an “independent operating subsidiary” of DCG. Allison’s The report refers to a shareholder letter that was reviewed by the publication. This letter notes that the decision was made as a response to the “current market environment.”
DCG said that the company had been added to their list. “has been focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity; as such, we have made the decision to suspend DCG’s quarterly dividend distribution until further notice.”
The Coindesk This article focuses on the issues DCG’s crypto lending affiliate faces Genesis Global Capital over the past two-months. On November 16, 2022 Genesis Lending unit stopped withdrawing money and authorized the origination of loans. It It was reported then that Genesis owes Gemini Earn Clients received $900 Million and as a consequence, Gemini Also, withdrawals were stopped and the facility was recently closed Earn program. AdditionallyReports stated that US regulators were conducting an investigation Genesis?, and Gemini A committee was created with Houlihan Lokey How to solve Genesis’s Liquidity problems
Gemini co-founder Cameron Winklevoss Later, he wrote a critical open-letter on the subject. He then followed up with another open-letter insisting that DCG’s board of directors be removed Barry Silbert From his position as CEO. DCG. Silbert A letter addressed to DCG shareholders was sent back, and he dismissed many of the claims. Winklevoss’s claims. The next day, both Gemini Genesis The US charged them Securities Exchange Commission (SEC) to make an unregistered offer.
DCG holds a large portfolio of crypto-related companies. Coindesk, Foundry USA, Grayscale Investments?, and Genesis Global Capital. All These companies are key players in the market; for instance, Foundry The largest bitcoin mining pool by hash rate is in the USA. Grayscale Runs the largest Bitcoin Trust (GBTC) in crypto industry
What Do you have any thoughts about the suspension or withdrawal of dividends? Digital Currency Group? Let Let us know your thoughts on this topic by leaving comments below.
