The Digital Currency Group (DCG), led by Barry Silbert, announced the closure of the subsidiary HQ Digital, a unit specialising in asset management. The Information, citing an internal memo, reports this.
According to the document, the unit ceased operations on January 2. A DCG spokesperson told the publication that the reason was the “prolonged crypto winter, creating significant headwinds for the industry,” as well as the macroeconomic environment.
According to The Information, HQ Digital managed more than $3.5 billion. The firm did not rule out that DCG may revisit the project in the future.
Earlier, concerns about the resilience of the entire group emerged in the community in the face of the collapse of FTX. The DCG’s Genesis Global Capital froze withdrawals and the issuing of new loans, and later attempted to raise emergency financing of $1 billion.
According to The Block, Genesis Trading laid off 30% of its staff. A company spokesperson said the decision was tied to “unprecedented industry challenges”.
The WSJ added that the platform was reportedly considering filing for bankruptcy.
Earlier in late 2022, Financial Times reported that Genesis and DCG owed Gemini clients $900 million.
Subsequently, Gemini co-founder Cameron Winklevoss, in an open letter to Silbert, urged him to pay the full amount by January 8.
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