Cryptocurrency Company DCG and Genesis Front Still Waters! DCG Goes Downsizing! Is Bankruptcy Near?

Rumors of bankruptcy circulating about Genesis’Genesis’ parent company, Digital Currency Group (DCG), has also allegedly closed a subsidiary of the company, following news that the company laid off 30% of its employees.

As The Informatin reports, in a note shared with one of DCG’s clients, the asset management subsidiary HQ Digitalclosed the .

According to the note, FTX Damaged by its collapse, HQ Digital’s operations were halted on January 2.

This is the latest sign that DCG and Genesis are facing a serious liquidity crisis following the collapse of FTX.

A company spokesperson confirmed in a note to customers that they are closing the asset management division of DCG, called HQ Digital.

A DCG spokesperson made the following statements on the subject:

“Due to the broader macroeconomic situation and the prolonged crypto winter that has brought significant headwinds to the industry, we have made the decision to close the headquarters from January 31st.

We are proud of the work the team has done and look forward to potentially reviewing the project in the future. “

Genesis, as it is known FTXIt faced a major liquidity problem after the collapse of . After this crisis, the company announced that it abruptly stopped its withdrawals. Since then, Genesis has been trying to raise new capital to reopen withdrawals.

Apart from these events, cryptocurrency stock market Geminiclaimed that Genesis had been in trouble for too long and would soon file for bankruptcy.

Gemini co-founder Cameron Winklevoss wrote an open letter to DCG founder Barry Silbert stating that 34,000 customers of Gemini Earn products expect withdrawals to continue. He also accused Silbert of using “malicious distraction tactics.”