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Digital Currency Group, a task superior steadfast that owns a involvement successful much than 200 crypto projects, announced the dividend halt portion 1 of its subsidiaries is successful fiscal strife.
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Venture superior steadfast Digital Currency Group (DCG) has told shareholders it is halting its quarterly dividend payments until further announcement arsenic it attempts to sphere liquidity.
According to the letter sent to shareholders connected Jan. 17, the steadfast is focused connected “strengthening our equilibrium expanse by reducing operating expenses and preserving liquidity.”
Its fiscal issues are derived from the woes of its subsidiary, crypto broker Genesis Global Trading, which reportedly owes creditors much than $3 billion and DCG is besides considering selling immoderate of the assets wrong its portfolio.
Customers are presently incapable to retreat funds from Genesis aft it halted withdrawals connected Nov. 16, which has prompted Cameron Winklevoss — connected behalf of his speech Gemini and its users with funds connected Genesis — to telephone for the committee of DCG to remove Barry Silbert arsenic CEO of the steadfast successful a Jan. 10 unfastened letter.
Earn Update: An Open Letter to the Board of @DCGco pic.twitter.com/eakuFjDZR2
— Cameron Winklevoss (@cameron) January 10, 2023According to Winklevoss, Genesis owes Gemini $900 million for funds that were lent to Genesis arsenic portion of Gemini’s Earn program, which offers customers the quality to gain an yearly output of up to 7.4%. He besides claimed DCG owed $1.675 cardinal to Genesis though DCG brag Barry Silbert denied this
Soon after, connected Jan. 12, the United States Securities and Exchange Commission (SEC) poured substance connected the occurrence charging some firms with offering unregistered securities done the Earn program.
Related: Crypto Biz: DCG’s ‘carefully crafted run of lies’?
Genesis’ problems archetypal became evident connected Nov. 16, erstwhile it halted lawsuit withdrawals successful the aftermath of the FTX fallout, citing “unprecedented marketplace turmoil” which resulted successful “abnormal” levels of withdrawals.
On Nov. 10, little than a week earlier, Genesis revealed it had astir $175 cardinal stuck connected FTX, which resulted successful DCG sending Genesis an emergency equity infusion of $140 million successful an effort to resoluteness its liquidity issues.
DCG besides owns Grayscale Investments and its bid of integer plus trusts and has invested successful implicit 200 companies wrong the crypto manufacture including recognizable names specified arsenic blockchain investigation steadfast Chainalysis, stablecoin issuer Circle and integer plus speech Kraken.
Cointelegraph contacted DCG for remark but did not person a response.
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