- HQ Digital has gone out of business due to the ongoing crypto winter.
- The company was the wealth management arm of the cryptocurrency group.
The post-winter of 2022 appears to have followed Digital Currency Group (DCG) into 2023. DCG boasted an impressive portfolio that included companies like Grayscale Investments Inc and Genesis Global. But the company lost a major chunk of its crypto empire on January 2, according to a January 5 report by The Information.
DCG’s main office has gone out of business
DCG Wealth Management was launched last year and was initially described as a “reimagined multi-family office”. The above report further stated that the New York-based wealth management company managed approximately $3.5 billion in assets as of December 2022.
A DCG spokeswoman said in a statement:
“Due to the state of the broader economic environment and the long crypto winter that provided significant headwinds to the industry, we have made the decision to liquidate the headquarters. We are proud of the work the team did and look forward to revisiting the project in the future.”
Cryptocurrency collection issues
The cryptocurrency pool has been under pressure since the collapse of the Bahamas-based cryptocurrency exchange FTX. The downfall of FTX has led to many crypto companies going bankrupt as a result. Liquidity issues stemming from these market events also weighed on DCG’s Genesis Global reading.
Earlier today, Genesis Trading announced that it is laying off 30% of its employees. This staff reduction came just months after a similar move was made in August 2022, when the cryptocurrency exchange shed 20% of its staff.
The company blamedUnprecedented Industry Challenges” for today’s decisions. The crypto industry anticipated this decision after a letter the company’s CEO sent to its clients, in which he acknowledged that Genesis Trading needed more time to sort out its finances.
Also, on January 3, Gemini founder Cameron Winklevoss has accused DCG head Barry Silbert of acting in bad faith. Genesis reportedly owed Gemini $900 million at the time of publication, and Winklevoss alleged that Silbert and DCG engaged in “delaying tactics.”