Digital Currency Group (DCG), a venture capital firm, has announced that it will be halting its quarterly dividend payments in an effort to preserve liquidity.
This decision is in light of the financial troubles faced by its subsidiary, crypto broker Genesis Global Trading. Genesis currently owes creditors over $3 billion, and DCG is considering selling some of its assets to mitigate these issues.
Customers of Genesis have been unable to withdraw funds since November 16th, which prompted Cameron Winklevoss, on behalf of his exchange Gemini, to call for the removal of DCG’s CEO, Barry Silbert, in an open letter.
Winklevoss claims that Genesis owes Gemini $900 million as part of their Earn program which offers customers the ability to earn an annual yield of up to 7.4%.
The situation was further complicated on January 12th when the United States Securities and Exchange Commission (SEC) charged both Genesis and DCG with offering unregistered securities through the Earn program.
DCG’s move to halt dividends is an effort to strengthen its balance sheet and conserve liquidity. This decision was made in light of the ongoing market turmoil and the financial issues faced by Genesis.
