Crypto winter unrivaled as Digital Currency Group forced to shut down HQ

1 year ago 74
  • HQ Digital has ceased its operations owed to the ongoing crypto winter. 
  • The steadfast was the wealthiness absorption part of the Digital Currency Group. 

The after-effects of 2022’s crypto wintertime look to person followed the Digital Currency Group (DCG) into 2023. DCG boasted of an awesome portfolio which included companies specified arsenic Grayscale Investments Inc and Genesis Global. However, the steadfast mislaid a cardinal portion of its crypto empire connected 2 January, according to a 5 January study by The Information.

DCG’s HQ ceases operations

DCG’s wealthiness absorption outfit was launched past twelvemonth and was initially described arsenic a “re-envisioned multi-family office.” The supra study further stated that the New York based wealthiness absorption steadfast managed astir $3.5 cardinal successful assets arsenic of December 2022. 

In a statement, a spokeswoman for DCG said:

“Due the authorities of the broader economical situation and prolonged crypto wintertime presenting important headwinds to the industry, we made the determination to upwind down HQ. We’re arrogant of the enactment that the squad has done and look guardant to perchance revisiting the task successful the future.” 

Mounting troubles for Digital Currency Group

The Digital Currency Group has been nether unit ever since the illness of the Bahamas-based crypto speech FTX. FTX’s downfall near respective crypto firms bankrupt arsenic a result. The liquidity issues induced by these marketplace events person impacted DCG’s Genesis Global speechmaking arsenic well. 

Earlier today, Genesis Trading announced that it laid disconnected 30% of its employees. This workforce simplification came conscionable months aft a akin determination was made successful August 2022, erstwhile the crypto trading steadfast fto spell of 20% of its employees. 

The steadfast blamed the “unprecedented manufacture challenges” for today’s decision. The crypto manufacture had been anticipating this determination pursuing a missive that the firm’s CEO sent to its clients, which acknowledged that Genesis Trading needed much clip to benignant retired its finances. 

Moreover, connected 3 January, Gemini co-founder Cameron Winklevoss accused DCG main Barry Silbert of operating successful atrocious faith. Genesis reportedly owed Gemini $900 cardinal astatine property time, and Winklevoss has alleged that Silbert and DCG were engaging successful “stall tactics.” 

Ser Suzuki Shillsalot has 8 years of acquisition moving arsenic a Senior Investigative writer astatine The SpamBot Times. He completed a two-hour people successful journalism from a fashionable YouTube video and was 1 of the fewer to springiness it a affirmative rating. Shillsalot's writings chiefly absorption connected shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is simply a flimsy anticipation the illustration pic is AI-generated. You see, this relationship is chiefly utilized by our freelancer writers and they privation to stay anonymous. Wait, are they Satoshi? :/

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