Digital Currency Group (DCG), the parent firm of troubled crypto broker Genesis, has announced the closure of digital asset management subsidiary HQ Digital.
HQ Digital ceased operations on January 2nd. At the time of closing, the company had about $3.5 billion under management. According to HQ’s latest financial report, the company had over $3.5 billion of assets under management as of December.
“Due to deep-seated economic environment issues and the prolonged crypto winter posing significant challenges to the industry, we have made the decision to close HQ Digital Headquarters,” DCG said in a statement.
As a reminder, Genesis, a subsidiary of DCG, had previously suspended withdrawals and issuance of new loans following the FTX crash in November, a move that had a significant negative impact on other crypto companies in the industry, including the Gemini exchange and its Earn product.
In December, Gemini co-founder Cameron Winklevoss said that the Committee of Creditors, which includes the Gemini exchange, sent Genesis and DCG “an asset recovery plan for Earn users.”
Source: Bits
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