Digital Foreign money Group (DCG) has introduced that it’s shutting down operations at its wealth administration division HQ. In response to a report by The Data, DCG is taking such a drastic step because of the prevalent financial state of affairs the world over. To that impact, a spokesperson for the agency launched a press release saying:
“Because of the state of the broader financial setting and extended crypto winter presenting important headwinds to the business, we made the choice to wind down HQ, efficient January 31, 2023.”
DCG Might Be Dealing with Liquidity Points amid HQ Information
Definitely, DCG is among the firms hardest hit by the implosion of the FTX trade in early November. The agency, which owns main crypto gamers resembling Grayscale and beleaguered Genesis, has had it tough for the reason that starting of final 12 months. However so did most corporations globally. Issues took a flip for the more serious for the corporate, nevertheless, when FTX finally filed for chapter.
Additionally it is value noting that the information of HQ shutting down comes on the identical day that Genesis introduced an enormous layoff itself. Genesis disclosed earlier that it might be parting methods with 30% of its workers.
With lots of its subsidiaries having one hassle or the opposite, professional issues are actually being raised about the way forward for DCG itself.
Recall that again in November, CEO Barry Silbert assuaged investor fears, assuring them there was nothing to fret about. That was regardless of DCG owing about $575 million to Genesis. Genesis later halted withdrawals barely just a few days later because of this and is but to renew withdrawals as of this writing.
In the meantime, there are causes to imagine that the monetary woes of DCG’s subsidiaries merely replicate the state of affairs on the high. In December, a creditor committee investigating Genesis’ liquidity crunch hinted that DCG can also be in monetary hassle. Extra so, Dutch cryptocurrency trade Bitvavo has additionally come ahead with one other declare that DCG owes practically $300 million. Bitvavo even hinted that the corporate doesn’t seem to have the ability to pay again.
In a bid to distance itself from the state of affairs, DCG claims that it has no enterprise with the matter as it’s solely Genesis’ legal responsibility. Nonetheless, DCG as soon as gave the impression to be untouchable however could quick be shedding its monetary stability.
Mayowa is a crypto fanatic/author whose conversational character is sort of evident in his model of writing. He strongly believes within the potential of digital belongings and takes each alternative to reiterate this.
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