- In a letter to shareholders dated January 17th, the company stated its intention.
- Winklevoss claims that Genesis owes Gemini $900 million.
In an effort to preserve liquidity, venture capital company Digital Currency Group (DCG) has informed its shareholders that it would not be paying out its quarterly dividends until further notice.
In a letter to shareholders dated January 17th. The company stated its intention on “strengthening our balance sheet by reducing operating expenses and preserving liquidity.” DCG said that it was contemplating selling off a portion of its holdings.
Struggle Continues Post FTX Fiasco
Its difficulties stem from those of a subsidiary, cryptocurrency broker Genesis Global Trading. Which allegedly owes more than $3 billion to its creditors.
As of right now, customers are unable to withdraw funds from Genesis due to the exchange’s decision to halt withdrawals on November 16. This has led Cameron Winklevoss, on behalf of his exchange Gemini and its users with funds on Genesis, to write an open letter to the board of DCG on January 10 demanding that they remove CEO Barry Silbert.
Winklevoss claims that Genesis owes Gemini $900 million for money provided to the company via Gemini’s Earn programme, which allows its clients to earn a return of up to 7.4 percent per year on their investments. Silbert refuted Winklevoss’s allegation that DCG owed Genesis $1.675 billion.
In the days after Winklevoss’s letter, the United States Securities and Exchange Commission (SEC) added fuel to the flames by filing charges against both companies on January 12 for marketing unregistered securities via the Earn programme.
Genesis’ issues initially surfaced after the withdrawal stop on November 16. The exchange said the “unprecedented market turmoil” caused by FTX’s demise led to abnormally high withdrawal volumes.
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