DCG Suspends Quarterly Dividends Amidst Genesis Lawsuit

Genesis Global's parent company, Digital Currency Group, has 

Announced that it will no longer issue quarterly dividends in order to reduce expenses.

According to the company's letter to shareholders, the group is committed to improving its balance sheet by cutting operational costs and improving cash management.

DCG is experiencing financial difficulties

As per reports, the group shut down its wealth management business HQ Digital earlier this month, becoming another victim of the FTX collapse. Since the collapse of FTX, the Digital Currency Group has undertaken extreme cost-cutting measures.

Reports added that Grayscale's parent company laid off 30% of Genesis' workforce and closed its headquarters. It owes creditors more than $3 billion. To raise funds, DCG's subsidiary is apparently considering selling assets from its vast venture portfolio.

Several media outlets previously reported that Genesis is on the verge of filing for Chapter 11 bankruptcy. In a letter to shareholders issued on January 10, CEO Barry Silbert stated, “bad performers and frequent blow-ups have caused havoc on our industry, with far-reaching consequences.”

Genesis CEO is Gemini's target

The letter was issued in response to Gemini co-founder Cameron Winklevoss' request that Genesis fixes Gemini Earn's concerns. Winklevoss released a second letter directed at the Genesis CEO.

Winklevoss outlined a complex web of transactions involving DCG's Genesis and Three Arrows Capital (3AC). He also accused DCG of accounting fraud and spreading false information regarding the company's financial situation.

Meanwhile, Grayscale is battling the United States Securities and Exchange Commission (SEC) over its ETF offering. The bankrupt exchange recently informed creditors that cyber-attacks resulted in the theft of approximately $415 million.

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