DCG exposes quarterly dividends in the middle of the Genesis crisis: report
DCG exposes quarterly dividends in the middle of the Genesis crisis: report
The crypto conglomerate of Barry Silbert, the Digital Currency Group (DCG), announced that the quarterly dividends will be discontinued until further notice.
In an email to the shareholders viewed by Bloomberg, the crypto investment company said that it is currently focusing on the "reduction of operating costs and maintaining liquidity" in response to the current market environment.
Problems for DCG
The collapse of the FTX revealed considerable irregularities in the Empire of Barry Silbert, with the DCG being subjected to an intensive examination. The risk capital company has several subsidiaries, including the world's largest digital asset manager Grayscale, the institutional credit company Genesis and the consulting company Foundry.
Due to the financial emergency, Genesis was forced to interrupt the allocation and repayment of new loans-a step that affected the Gemini Earn program directly. This then escalated the fight with the co-founder of the crypto exchange, Cameron Winklevoss, the DCG accused the wrong presentation and the balance sheet fraud and claimed Silbert's resignation.
It was previously reported that Genesis owes $ 900 million to the users of Winklevoss' profitable savings product Gemini Earn. DCG and Gemini previously assured the investors that the two companies have tried to find a solution.
Sec aims at the "Gemini Earn" program from
While the fate of the customer funds stuck in the Gemini Earn program remained in the suspension, the dispute between the two managers caused Gemini to terminate his framework credit with Genesis and thus ended the program "officially". This step requires genesis to return outstanding assets.
A day later, the US Securities and Exchange Commission (SEC) sued the two crypto companies because they had supposedly not offered and sold not registered securities through the program to investors. SEC chairman Gary Gensler explained:
"Today's accusations build on previous measures to make it clear to the market and the investing public that crypto rental platforms and other brokers have to comply with our proven security laws. This protects investors best. It promotes trust in the markets. It is not optional. It is the law."
Overall, Genesis is currently swimming in an amazing debt of $ 3 billion, and to repay part of its debts, DCG wanted to sell the crypto broker's risk capital portfolio. Therefore, a global investment bank based in New York - Moelis - was commissioned to examine options in order to cover part of the Genesis debt crisis. However, conversations about a fresh capital injection in the crypto loan seem to be off the table.
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