Digital Currency Group (DCG),aUS-based cryptocurrency conglomerate, has closed down its wealth-management arm amid turmoil in the crypto market, reported The Information.
The wealth management unit, called HQ, reportedly had over $3.5bn in assets under management.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Late last year, DCG, which owns asset manager Grayscale Investments and cryptocurrency brokerage firm Genesis and others, reduced the size of its workforce by 10%.
Genesis has also announced a plan to layoff over 60 people, which represents 30% of its staff.
In an emailed statement seen by Bloomberg, a DCG spokesperson said: “Due the state of the broader economic environment and prolonged crypto winter presenting significant headwinds to the industry, we made the decision to wind down HQ, effective 31 January.
“We’re proud of the work that the team has done and look forward to potentially revisiting the project in the future.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataDCG has been carrying out changes and handling various issues at some of its major subsidiaries after the failure of American cryptocurrency exchange FTX.
In November last year, Genesis revealed that it would receive $140m of equity investment from DCG following the collapse of FTX, where Genesis’ derivatives business has parked nearly $175m in funds.
The investment is aimed at increasing the balance sheet of the brokerage firm.
It will also help Genesis to boost its position in the crypto capital markets and offer services to its clients.
