1 year ago
Digital Currency Group (DCG) is shutting down its wealthiness absorption subsidiary HQ Digital, The Information reported Jan. 5, citing an interior memo.
According to the report, HQ Digital halted operations connected Jan. 2; it was launched successful June 2022 and operated for conscionable implicit fractional a year.
The writer of the article, Kate Clark, aboriginal published a statement from a DCG spokesperson, which stated that HQ Digital would unopen down owed to the “broader economical environment” and the “prolonged crypto winter.”
The spokesperson besides said that DCG could perchance revive the subsidiary successful the future.
The archetypal study called HQ Digital “collateral harm successful the FTX implosion,” apt referring to issues astatine different DGC subsidiary, Genesis Global Capital.
Genesis halted withdrawals and indebtedness redemptions pursuing FTX’s illness successful November. That determination besides impacted Gemini Earn, an interest-bearing work offered successful concern with the crypto speech Gemini.
On Jan. 5, Genesis laid disconnected 30% of its staff arsenic reports suggested that the steadfast is exploring a imaginable bankruptcy filing.
Genesis has denied vulnerability to FTX’s FTT token and stated that it has nary lending narration with FTX. However, it did admit to holding $175 cardinal astatine FTX.
DCG besides owns galore different crypto companies including the quality tract CoinDesk, the plus manager Grayscale, the mining and advisory steadfast Foundry, the crypto wallet institution Luno, and the organization trading API work TradeBlock.
Of these companies, lone Luno has been impacted truthful far, arsenic it discontinued interest-bearing wallets successful November. It remains to beryllium seen whether the different subsidiaries are astatine risk.
The station Genesis proprietor Digital Currency Group shuts down wealthiness absorption subsidiary appeared archetypal connected CryptoSlate.
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