Accompanied by Gemini ‘s debt collection , and later Zhu Su shaking out the shady scene of relying on “left-handed and right-handed” to fill the loss loopholes, triggering rumors of DCG explosions, bad news came again earlier today (6th), DCG Announced the closure of its wealth management subsidiary HQ Digital, while Genesis, another subsidiary on the verge of bankruptcy, is also undergoing a second round of layoffs and is considering filing for bankruptcy. At the beginning of the new year, the cryptocurrency market is once again clouded and panic is pervasive.
Genesis layoffs again
On January 6, a spokesperson for cryptocurrency trading firm Genesis Global Trading confirmed in a statement that a second round of layoffs began on Thursday following a 20% layoff in August last year.
Genesis laid off about 30% of its workforce, bringing the headcount down to 145, a person familiar with the matter said. The layoffs are mainly concentrated in the sales and business development departments, and the sales team in Singapore has been completely laid off.
“As we continue to navigate unprecedented challenges, Genesis has made the difficult decision to reduce our workforce globally,” a Genesis spokesperson said. “These actions are part of our ongoing efforts to drive business forward. We sincerely appreciate the hard work of our talented and dedicated team as we look for the best long-term outcomes for our clients, clients and employees.”
The layoffs came a day after Genesis wrote to its customers that it would “reduce costs and increase efficiencies” in a challenging environment.
Genesis, a subsidiary of DCG, was implicated by the collapse of FTX. On November 16, it announced that its lending department would suspend customer fund redemption and new loan issuance services . withdrawal.
On Nov. 22, Genesis warned investors that it could file for bankruptcy if it can’t raise funds.
The Wall Street Journal reported earlier today that Genesis is working with investment bank Moelis & Company to explore a potential solution to its financial woes and is considering filing for Chapter 11 bankruptcy, according to people familiar with the matter.
DCG Announces Closure of Subsidiary HQ Digital
Also on January 6, DCG said it would close its wealth management subsidiary called HQ Digital.
DCG said in a statement: “Due to significant headwinds to the cryptocurrency industry from broader economic conditions and a lengthy crypto winter, we have decided to close HQ Digital, our wealth management subsidiary, effective January 31, and we look forward to It is possible to revisit the project in the future.”
The firm reportedly manages more than $3.5 billion in assets.
At the same time, Grayscale, another bastion of the DCG encryption empire, is also under pressure. Earlier, New York hedge fund Fir Tree Capital Management filed a lawsuit against the company, accusing GBTC of “potential mismanagement and conflicts of interest.” According to YCharts data, the current negative premium of GBTC has reached 47.54%, which is at the lowest level in history.
