DCG Shuts Down HQ, While Genesis Cuts 30% of Employees: Report

• The crypto brokerage firm Genesis is cutting 30% of its staff, this is exactly two months after it halted withdrawals.
• Genesis has denied exposure to FTX’s FTT token and stated that it has no lending relationship with FTX. However, it did admit to holding $175 million at FTX.

The Digital Currency Group (DCG), parent company of Grayscale, has announced that it is shutting down its wealth management division, HQ Digital. The division was launched in June 2022 and operated for just over half a year.

DCG said that the decision to shut down HQ Digital was made due to the “state of the broader economic environment and prolonged crypto winter presenting significant headwinds to the industry.” The company said that it is proud of the work that the team has done and looks forward to “potentially revisiting the project in the future.”

In addition to shutting down HQ Digital, DCG has also announced that it is laying off 30% of its staff at Genesis, a crypto financial services company that is also owned by DCG. The layoffs come after Genesis froze customer withdrawals and loan redemptions for its lending business in November 2022.

The layoffs at Genesis and the shuttering of HQ Digital are the latest signs of trouble in the cryptocurrency industry. The industry has been hit hard by the recent market downturn, which has wiped out billions of dollars in value.

The layoffs at Genesis and HQ Digital are also a blow to DCG, which is one of the largest and most influential companies in the cryptocurrency industry. The company has been facing financial difficulties in recent months, and the layoffs are likely to make things worse.

It remains to be seen how DCG will weather the current storm. The company has a strong track record, but it will need to make some tough decisions in the coming months if it wants to survive.