Genesis owner DCG has closed its wealth management unit as the crypto giant battles a stream of troubles
Genesis parent Digital Currency Group has closed down its wealth management unit, the latest in a stream of troubles to hit the crypto conglomerate as the collapse of FTX rattles the digital asset sector.
DCG's crypto businesses include financial services provider Greyscale, in addition to embattled broker Genesis and wealth manager HQ. New York-based HQ managed about $3.5 billion in assets as of December, according to"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 January 31," DCG said in a statement reported by several media outlets.
"We're proud of the work that the team has done and look forward to potentially revisiting the project in the future," it added., citing"unprecedented industry challenges". Troubles have been mounting at DCG subsidiaries after leading crypto exchange FTX's collapse, which shook faith in the crypto industry.
At the same time, the digital asset sector has had to grapple with a huge selloff in cryptocurrencies, known as a"crypto winter". Investors have jumped out of riskier assets as inflation at 40-year highs drove massive interest rate hikes by the Federal Reserve.customer withdrawals in November. It said the FTX implosion had prompted a flood of withdrawals that outstripped the firm's liquidity, and its derivatives business had $175 million locked in FTX trading accounts.
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