Digital Currency Group exposes dividends with the subsidiary Genesis due to regulatory problems -

Digital Currency Group exposes dividends with the subsidiary Genesis due to regulatory problems -

According to a shareholder letter from the Digital Currency Group (DCG), which was viewed by the financial and crypto publication Coindesk, the company has exposed the dividends until further notice. This message is followed by the US Securities and Exchange Commission (SEC), which accuses a subsidiary of DCG, Genesis Global Capital, to have carried out an "non -registered offer and sale of securities to private investors".

Digital Currency Group takes steps to strengthen the balance sheet by suspending dividends

On January 17, 2023, Coindesk Reporter Ian Allison published a Article disclosure that the Digital Currency Group (DCG) will initially expose the dividend payments. It is worth noting that Coindesk, a news agency focused on financial crypto, is an "independent operational subsidiary" from DCG. Allison's report quotes a shareholder letter that was checked by the publication and determines that the decision was made in response to the "current market environment".

DCG added that the company "focused on strengthening our balance sheet by reducing operating costs and maintaining liquidity - so we made the decision to suspend the quarterly dividend distribution from DCG until further notice."

The Coindesk article follows the problems with which the Crypto-Lending subsidiary of DCG, Genesis Global Capital, has dealt with in the past two months. On November 16, 2022 the credit unit of Genesis Suspends New allocation of loans. It was then that Genesis gemini earn-customers 900 million US dollar owes why Gemini also paused the payments and recently stopped the Earn program. In addition, report in detail that Genesis of US regulatory authorities and gemini was examined a committee formed with Houlihan Lokey to solve the liquidity problems of genesis.

later, Gemini co-founder Cameron Winklevoss a Critical open letter then on the topic, and then with still insist that the DCG board of BARRY Silbert from its role releases as a DCG CEO. Silbert answered with a letter The DCG shareholders, in which he rejects many of the claims raised by Winklevoss. The next day, both Gemini and Genesis da Calculated by the US Securities and Exchange Commission (SEC) with the implementation of a non -registered offer.

DCG has a huge portfolio of crypto companies, including Coindesk, Foundry USA, Grayscale Investments and Genesis Global Capital. All of these companies are important players in the industry; Foundry USA is, for example, the largest Bitcoin mining-pool with regard to the hashrates and grayscale, the largest Bitcoin-Trust (GBTC) in the crypto industry.

What do you think of the suspension of the dividends by the Digital Currency Group? Share your opinion on this topic in the comment area below.

Jamie Redman

Jamie Redman is the news manager at Bitcoin.com News and a Journalist for Financial Technology living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com news about the disruptive protocols that arise today.


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