in last November FTXafter the bankruptcy of Bitcoin (BTC) investor Digital Currency Group and its subsidiary Genesis experiencing a liquidity shortage.
In this regard, Genesis suspended withdrawals about two months ago (on November 16).
While there is talk in the market that DCG and Genesis will declare bankruptcy Bloombergannounced that DCG is suspending quarterly dividend payments to shareholders as part of its cash holding strategies.
In a letter sent to shareholders yesterday, January 17, it was stated that they should focus on reducing operating expenses, maintaining liquidity and strengthening their balance sheets, while suspending dividend payments for a while.
“In response to the current market environment, DCG has focused on strengthening our balance sheet by reducing operating expenses and maintaining liquidity.
Therefore, we have made the decision to suspend DCG’s quarterly dividend distribution until further notice.”
Experts, who think that DCG’s financial difficulties are mainly due to the problems of its subsidiary, Genesis Global Trading, pointed out that Genesis owes more than 3 billion dollars to its creditors.
Also, as it is known, because of these debts and troubles of Genesis, Gemini co-founder Cameron Winklevoss wrote to DCG board of directors Barry Silbert in a letter and requested that Genesis owed $900 million to Gemini and that this debt be paid.
After Genesis failed to pay the debt, Cameron Winklevoss called for the removal of Barry Silbert as CEO of DCG in another open letter on January 10.
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