Due to the “prolonged crypto winter” and the “broader economic environment,” Digital Currency Group (DCG) has announced that it is shutting down its wealth management subsidiary, HQ Digital, which launched in June 2022.
The DCG spokesperson stated that the company may eventually revive HQ Digital in the future.
This news comes in the wake of issues at another DCG subsidiary, Genesis Global Capital, which suspended withdrawals and loan redemptions in November and is reportedly exploring a potential bankruptcy filing.
DCG holds a variety of other crypto companies, such as CoinDesk, Grayscale, Foundry, Luno, and TradeBlock.
So far, only Luno has been significantly impacted, as it stopped offering interest-bearing wallets in November. It is still unclear if the other subsidiaries are facing any risks.