After DCG subsidiary Genesis Global Capital halted withdrawals from its platform in November 2022, the second biggest blow hit the US-based venture capital company. On Thursday, DCG announced that the firm is shutting down its wealth management unit HQ.
As per reports, the firm had more than $3.5 billion worth of assets under its management.
“Due to 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. We are proud of the work that the team has done and look forward to potentially revisiting the project in the future,” the firm said in a statement.
Meanwhile, this week DCG is facing continuous challenges. Recently, the DCG CEO faced criticism from the Gemini founder. Cameron Winklevoss, the co-founder of Gemini, accused Barry Silbert, CEO of Digital Currency Group (DCG), of intermingling users’ funds.
On Jan 2nd, Winklevoss wrote an open letter to Silbert that Genesis Global Capital and DCG for owing Gemini’s users funds worth $900 million.
Source: https://www.thecoinrepublic.com/2023/01/08/dcg-wind-down-wealth-management-unit-hq/