Digital Currency Group halts quarterly dividend payments

Facing financial difficulties after the collapse of FTX the holding DCG said it would suspend quarterly dividend payments. Bloomberg reports.

The group said it would focus on “strengthening the balance sheet by cutting operating costs and preserving liquidity”, according to a letter to shareholders.

The move comes as Genesis Global Capital, the crypto-lending platform, faces difficulties. The latter owes $3 billion, according to media reports. This amount includes claims by Gemini exchange customers for $900 million.

Genesis co-founder Cameron Winklevoss, in another open letter , urged DCG chief Barry Silbert to step down. The public dispute has heightened fears that Genesis could file for bankruptcy.

In November, the platform did not rule out this scenario in an attempt to raise financing. The move raised concerns about the resilience of parent DCG and the future of GBTC.

In early 2023 Digital Currency Group announced the closure of its asset-management subsidiary HQ Digital. Genesis Trading cut 30% of its staff.

Bloomberg reported in January that the SEC and the U.S. Department of Justice began examining the nature of Digital Currency Group’s interactions with Genesis Global Capital.

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