Digital Currency Group (DCG), the crypto behemoth that such major crypto players Genesis and digital asset manager Grayscale, confirmed Thursday that it is winding down HQ, its wealth management division, according to a report by The Information.
DCG commented that the decision was made due to the considerable economic turmoil and protracted crypto winter.
The subsidiary had roughly $3.5 billion in assets under management as of December, according to the report.
Financial turbulence at the company has been simmering since November when crypto exchange FTX filed for bankruptcy. The black swan event sent shockwaves throughout the sector and put extreme pressure on DCG, which owns Genesis Global Trading.
The most recent news coincided with an open letter written by Cameron and Tyler Winklevoss, founders of cryptocurrency exchange Gemini, accusing DCG and Genesis of employing "bad-faith stall tactics" to avoid repaying their debts. The two reportedly owe Gemini users around $900 million.
Barry Silbert, CEO of DCG responded by denying these allegations while reasserting they are in no danger of facing cash flow problems or liquidity issues.
Thursday's developments may be a signal DCG has serious money trouble looming.
Tomiwabold Olajide
