- Genesis has been experiencing significant liquidity difficulty since the FTX crash.
- Co-founder of Gemini recently addressed an open letter to DCG CEO.
Digital Currency Group (DCG), Genesis Global’s parent business, has chosen to shut down its wealth section hours after word of the layoffs spread. Genesis has been experiencing significant liquidity difficulty since the FTX crash, and this is the latest hint of concern.
A spokesman for Digital Currency Group (DCG) stated that the business has closed its wealth management section, known as HQ Digital.
The DCG representative said in an email statement:
“Because of the failure of the FTX cryptocurrency exchange, the Digital Currency Group has had significant problems with several of its largest subsidiaries.”
Domino effect Storming the Industry
Genesis Global, a wholly owned subsidiary of DCG, stated abruptly last month that they would be stopping withdrawals due to a severe cash flow crisis. Since then, Genesis’ lending division has been seeking to get more funding.
Since cryptocurrency firm Genesis chose to halt withdrawals, another cryptocurrency exchange, Gemini, has found itself in the middle of the conflict. Incredibly, sources indicate that Genesis is holding about $1 billion in funds for the Genesis cryptocurrency exchange.
Cameron Winklevoss, co-founder of Gemini, recently addressed an open letter to DCG CEO Barry Silbert, pointing out that 34,000 people who use Gemini Earn products are waiting for withdrawals to restart. Furthermore, he claimed that Silbert was using “bad faith stalling tactics” with regard to the frozen monies.
When asked about this, however, Digital Currency Group CEO Barry Silbert said, “DCG has never missed an interest payment to Genesis and is current on all loans outstanding; next loan maturity is May 2023. DCG delivered to Genesis and your advisors a proposal on December 29th and has not received any response”.
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