Bumpy Crypto Winter Forces Digital Currency Group to Shut down HQ Operation
The trending wealth management company Digital Currency Group (DCG) hits the headlines again after confirming to shut down the operation of its HQ. DCG confessed that it failed to recover from the 2022 rough crypto winter.
Digital Currency Group to Shuts Down its HQ
On January 5, DCG announced its plans to shut down the operation of its HQ. The ongoing bearish crypto market and current economic pressure influenced the DCG’s move. The announcement restated that HQ would cease operations by the end of January.
Nonetheless, DCG management acknowledged the indispensable efforts made by the HQ team. They remain optimistic about restoring operations in future. DCG’s statement coincides
with Genesis’s 30% layoff plans announced last week linked to the FTX’s collapse. The now-bankrupt exchange suspended operations that hit the huge market players and crypto moguls’ bull activity.
Collapse of the Crypto Dynasty
DCG, the parent company to Genesis Global, Grayscale Investment and CoinDesk, joined the list of companies battling liquidity challenges since last year. The firm has followed other FTX’s collapse victims to scale down operations. It announced partial operations on January 2.
HQ was established in 2022 under the DCG wealth management section tasked to manage investors’ funds. Its operation had gained fruition since it was reported to control $3.5B in assets in December 2022.
Following the crypto winter impulses, DCG CEO Barry Silbert penned a letter to urge investors to remain calm. Silbert assured them that Genesis is pursuing recovery plans to compensate the investor for the hundreds of millions frozen on its platform.
The CEO letter triggers criticism from the crypto billionaire Cameron Winklevoss, the co-founder of Gemini. Winklevoss termed Silbert’s sentiments as “stall tactics” to evade compensating the investors. His reprehension was rooted in Gemini’s investment that translated to over $900M stuck on the Genesis platform.
Before the criticism, Winklevoss had sent a letter to Silbert dated January 2 claiming that the loan acquired by DCG from Genesis totalling around $1.7B left the market hurt and the investors still aching recovery. He demanded DCG prioritize the recovery plans by January 8.
Editorial credit: mundissima / Shutterstock.com
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