Per Bloomberg
Digital Currency Group Closes its HQ with $3.5 Billion in Assets Under Management
1/6/2023
The Digital Currency Group (DGC) is officially closing down its wealth-management division, called its HQ, as the company is dealing with the aftermath of the FTX collapse. The FTX collapse reportedly affected some of the company's biggest subsidiaries resulting in changes and challenges.
DGC is a crypto conglomerate that controls Genesis, a crypto broker, Graystone Investments, Foundry, a mining firm, and others. The company had to let go of 10% of its staff.
Genesis also let go of 30% of its workforce, which resulted in 60 of its staff losing their positions at the company. This comes after the broker let go of 20% of its staff in August 2022, per CoinDesk, a DGC-owned media outlet. In August 2022, Genesis still had 260 employees.
DGC revealed that it owed $575 million in loans and $1.1 billion in promissory notes to Genesis Global Capital. This information was revealed in a November letter, noted in an article by Forkast.
First reported by The Information, a spokesperson shared how the company was affected by the prolonged crypto winter and the broader economic environment.
DGC spokesperson: “We’re proud of the work that the team has done and look forward to potentially revisiting the project in the future.”
The spokesperson also revealed that the shutting down of DGC's HQ will take effect on January 31. By the start of February, its wealth-management division will officially be closed.
It was also pointed out on Yahoo Finance's bullet points that the HQ assets under management totaled over $3.5 billion. In November, Genesis Global Capital suspended new loan originations and redemptions.
Genesis also suffered from its $175 million locked-in FTX. In a previous article by WSJ, the broker was also looking to raise $1 billion to help get over the liquidity crunch before ultimately deciding to suspend redemptions.
See flow at unusualwhales.com/flow.
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