Digital Currency Group, founded by Barry Silbert, is winding down its wealth management department. The news comes as its subsidiary, Genesis, is laying off staff.
DCG, the parent company of the problematic cryptocurrency broker and lender Genesis Trading, reportedly told clients on Jan. 2 that HQ had halted operations.
The company closed the project citing the state of the general economic environment and extended crypto winter. The spokeswoman added that the firm might revisit the branch at some point in the future.
HQ Digital was established in 2022. It was primarily concerned with wealth management and managed the funds of cryptocurrency entrepreneurs and investors. Alana Ackerson, a former co-founder of blockchain loan company Figure, served as the CEO.
According to the report by The Information, HQ controlled more than $3.5 billion by the end of December.
After the failure of FTX in November, the DCG subsidiary, Genesis, banned withdrawals and new loan originations. This action has knock-on implications for other cryptocurrency companies, including the cryptocurrency exchange Gemini and its Earn program.
Recently, DCG head Barry Silbert became involved in a public dispute with Gemini co-founder Cameron Winklevoss about the issue.
Reddit users made catchy remarks regarding the situation. One redditor claims that Winklevoss’ letter to Barry Silbert explicitly said that Barry had mixed company money while working at DCG. If FTX is found to have an $8 billion hole in its books, the user believes that Barry Silbert will be arrested before the end of the year.
Meanwhile, Genesis started a fresh wave of layoffs on Jan. 4, resulting in a 30% reduction in the company’s personnel.