Digital Currency Group spins off its wealth management business

The parent of Grayscale and Genesis – Digital Currency Group to shut down its wealth management division by January 31.

crypto winter Another business swallowed up as the holiday season ends and 2023 begins. Digital Currency Group, parent company of Genesis and Grayscale Bitcoin rely on wrap up Its wealth management business is called HQ from January 31. it was over $3.5 billion In the property by December 2022.

Digital Currency Group braces for prolonged crypto winter

The FTX collapse, the global macroeconomic situation and the crypto winter have posed extreme challenges to the digital currency group.

Its spokesperson said, “Due to the state of the macroeconomic environment and significant headwinds for the industry caused by the prolonged crypto winter, we made the decision to close the headquarters. We are proud of the work the team has done and look forward to potentially revisiting this project in the future.

notice First reported the closure of the headquarters. Frustrated Community Calls Headquarters destroy money business.

Fighting a plethora of problems with Genesis layoffs

Gemini CEO Cameron Winklevoss exacerbated the problems with Genesis when he wrote an article open letter Barry Silbert, CEO of Digital Currency Group, has been asked by January 8 to resolve the problems faced by Gemini Earn users. Following the collapse of FTX, Genesis fell into a liquidity crunch and withdrawals had to be halted. Over $900 million in Gemini Earn client funds is stuck with Genesis.

As of Jan. 8, the digital currency conglomerate is taking serious measures to cut costs. As well as closing the headquarters, digital currency group crypto lender Genesis is to lay off 30% of its staff, according to wall street journal,

According to a Genesis spokeswoman, the layoffs are part of an effort to grow the business. She adds, “As we continue to face unprecedented industry challenges, Genesis has made the difficult decision to reduce our workforce globally. These measures are part of our ongoing efforts to grow our business.”

Origin is also considering a Chapter 11 filing in consultation with Moelis & Company, a New York-based investment bank.

2023 has been bad so far. With Genesis, crypto exchange – Huobi revealed 20% layoff of its employees. Recently, tech giant Amazon also announced to lay off an estimated 18,000 employees. There are also rumors of Gate.io staff being laid off.

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disclaimer

BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.


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