Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis

According to a shareholders’ letter from Digital Currency Group (DCG) viewed by finance and crypto publication Coindesk, the company has suspended dividends until further notice. This news follows the U.S. Commission de Sécurité et d'Echanges (SECONDE) charging a subsidiary firm of DCG, Genesis Global Capital, with operating an “unregistered offer and sale of securities to retail investors.”

Contenu

Digital Currency Group Takes Steps to Strengthen Balance Sheet by Suspending Dividends

On Jan. 17, 2023, Coindesk reporter Ian Allison published an article disclosing that the Digital Currency Group (DCG) is suspending dividend payments for the time being. It is worth noting that Coindesk, a financial crypto-focused news outlet, is an “independent operating subsidiary” of DCG. Allison’s report cites a shareholders’ letter reviewed by the publication, which notes that the decision was made in response to the “current market environment.”

DCG added that the firm has “been focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity — As such, we have made the decision to suspend DCG’s quarterly dividend distribution until further notice.”

The Coindesk article follows the problems the crypto lending subsidiary of DCG, Genesis Global Capital, has been dealing with over the past two months. On Nov. 16, 2022, Genesis’s lending unit suspended withdrawals and new loan originations. It was then signalé that Genesis owes Gemini Earn customers $900 million, and as a result, Gemini also paused withdrawals and recently shut down the Earn program. En outre, rapports detailed that Genesis was being probed by U.S. régulateurs, and Gemini formed a committee with Houlihan Lokey to resolve the Genesis liquidity issues.

Later, Gemini co-founder Cameron Winklevoss wrote a critical open letter about the subject, and then followed up with another open letter insisting that the DCG board remove Barry Silbert from his role as DCG’s CEO. Silbert responded with a letter addressed to DCG shareholders, in which he dismisses many of the claims made by Winklevoss. Le jour suivant, both Gemini and Genesis were charged by the U.S. Commission de Sécurité et d'Echanges (SECONDE) with conducting an unregistered offering.

DCG owns a vast portfolio of crypto companies, including Coindesk, Fonderie États-Unis, Investissements en niveaux de gris, and Genesis Global Capital. All of these companies are major players in the space; par exemple, Foundry USA is the largest bitcoin mining pool in terms of hashrate, and Grayscale manages the largest Bitcoin Trust (GBTC) in the crypto industry.

Tags dans cette histoire
Barry Silbert, confiance Bitcoin, Cameron Winklevoss, PDG, Des charges, CoinDesk, crypto companies, crypto lending, Les clients, DCG, Groupe de monnaie numérique, dividend suspension, dividends, financial crypto publication, Fonderie États-Unis, Gemini EARN, Genesis Global Capital, Investissements en niveaux de gris, independent operating subsidiary, liquidity issues, Loan Originations, market environment, Open Letter, Portfolio, SECONDE, SEC charges, securities sale, subsidiary, suspension, non enregistré, Retraits

What do you think about the suspension of dividends by Digital Currency Group? Faites-nous savoir ce que vous pensez de ce sujet dans la section commentaires ci-dessous.

Jamie Redman

Jamie Redman est le responsable de l'information chez Bitcoin-Tidings.com News et un journaliste spécialisé dans les technologies financières vivant en Floride. Redman est un membre actif de la communauté des crypto-monnaies depuis 2011. Il a une passion pour Bitcoin, code open-source, et applications décentralisées. Depuis septembre 2015, Redman a écrit plus de 6,000 articles pour Bitcoin-Tidings.com Actualités sur les protocoles perturbateurs qui émergent aujourd'hui.



Crédits image: Shutterstock, Pixabay, Wiki Commons

Avertissement: Cet article est à titre informatif seulement. Il ne s'agit pas d'une offre directe ou d'une sollicitation d'offre d'achat ou de vente, ou une recommandation ou une approbation de tout produit, prestations de service, ou des entreprises. Bitcoin-Tidings.com ne fournit pas d'investissement, impôt, légal, ou conseil comptable. Ni la société ni l'auteur ne sont responsables, directement ou indirectement, pour tout dommage ou perte causé ou prétendument causé par ou en relation avec l'utilisation ou la confiance accordée à tout contenu, biens ou services mentionnés dans cet article.

Lire avertissement