Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis

Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis  0

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. Securities and Exchange Commission (SEC) charging a subsidiary firm of DCG, Genesis Global Capital, with operating an “unregistered offer and sale of securities to retail investors.”

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 reported that Genesis owes Gemini Earn customers $900 million, and as a result, Gemini also paused withdrawals and recently shut down the Earn program. Additionally, reports detailed that Genesis was being probed by U.S. regulators, 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. The following day, both Gemini and Genesis were charged by the U.S. Securities and Exchange Commission (SEC) with conducting an unregistered offering.

DCG owns a vast portfolio of crypto companies, including Coindesk, Foundry USA, Grayscale Investments, and Genesis Global Capital. All of these companies are major players in the space; for example, 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 in this story Barry Silbert, bitcoin trust, Cameron Winklevoss, ceo, Charges, CoinDesk, crypto companies, crypto lending, Customers, DCG, Digital Currency Group, dividend suspension, dividends, financial crypto publication, Foundry USA, Gemini EARN, Genesis Global Capital, Grayscale Investments, independent operating subsidiary, liquidity issues, Loan Originations, market environment, Open Letter, Portfolio, SEC, SEC charges, securities sale, subsidiary, suspension, unregistered, Withdrawals

What do you think about the suspension of dividends by Digital Currency Group? Let us know what you think about this subject in the comments section below.

Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis  1 Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis  2 Sam Bankman-Fried Disputes FTX US ‘Shortfall’ Claims, Critics Skeptical of Excel Spreadsheet Defense NEWS | 2 hours ago Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis  3 FTX Discovers $5.5B in Liquid Assets — Debtors Explore Ways to Maximize Recovery via Potential Sale of Subsidiaries, Real Estate NEWS | 6 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons

Previous article

Sam Bankman-Fried Disputes FTX US ‘Shortfall’ Claims, Critics Skeptical of Excel Spreadsheet Defense

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimerShow comments

More Popular News

In Case You Missed It

Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis  4

Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament

A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market … read more.

Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Ethereum Foundation’s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether

Source

Updated: 01/18/2023 — 16:00

Leave a Reply

Your email address will not be published. Required fields are marked *

Btc news © 2021 Frontier Theme