Digital Foreign money Group (DCG), the crypto behemoth that such main crypto gamers Genesis and digital asset supervisor Grayscale, confirmed Thursday that it’s winding down HQ, its wealth administration division, in keeping with a report by The Info.
DCG commented that the choice was made because of the appreciable financial turmoil and protracted crypto winter.
The subsidiary had roughly $3.5 billion in property beneath administration as of December, in keeping with the report.
Monetary turbulence on the firm has been simmering since November when crypto change FTX filed for chapter. The black swan occasion despatched shockwaves all through the sector and put excessive stress on DCG, which owns Genesis World Buying and selling.
The latest information coincided with an open letter written by Cameron and Tyler Winklevoss, founders of cryptocurrency change Gemini, accusing DCG and Genesis of using “bad-faith stall techniques” to keep away from repaying their money owed. The 2 reportedly owe Gemini customers round $900 million.
Barry Silbert, CEO of DCG responded by denying these allegations whereas reasserting they’re in no hazard of going through money circulation issues or liquidity points.
Thursday’s developments could also be a sign DCG has critical cash bother looming.