DCG WEALTH Management Division closes hours after genesis has announced layoffs: Report

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Yesterday the DCG Group-a conglomerate, the Genesis, Grayscale and the headquarters of the asset management service-terminated personnel reduction by 30 %, since the shadow of the bankruptcy is found above the battered crypto broker.

DCG has been in difficulties for some time because partner services distance themselves from possible consequences.

Unfortunately, the problems seem to be increasing at DCG because one division after another begins.

winter closed

the worrying announcement of the staff loss and the possible bankruptcy of Genesis soon followed another with regard to the sister company "HQ".

According to a spokesman for the company, the headquarters will hire all activities on January 31, although it is considering reopening the branch in the future.

The closure of the headquarters is attributed to the general financial situation-and of course the ongoing crypto winter.

"Due to the state of the broader economic environment and the continuing crypto winter, which prepares the industry significantly, we have made the decision to close the headquarters with effect from January 31, 2023.

The first cracks showed themselves in November when Barry Silbert, CEO of DCG, told investors that the income in 2022 would be lower than expected. At that time, Genesis owed the parent company DCG about $ 575 million in August.

In order to further worsen the terrible financial situation of Genesis and DCG, Bitvavo alone claimed to owe around $ 300 million, which are supposed to blame Genesis alone.

investors and partners amazed

As reported by the information, the headquarters managed assets worth around 3.5 billion US dollars in December despite the crypto winter. As a result, partners and investors were supposedly stunned by the decision and claimed that they came completely out of the left field.

Although the DCG group indicates the imposion of 3AC and FTX as the guilty for their own problems-and claims that their assets have been lost when the lifting from the two no longer existing crypto platforms-the responsibility for liquidity problems is never transferred to someone else. If a proper Due Diligence had been carried out, the situation at DCG would probably be very different.

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