{"id":16614,"date":"2023-01-18T21:16:42","date_gmt":"2023-01-18T21:16:42","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/digital-currency-group-suspends-dividends-amid-regulatory-trouble-with-subsidiary-genesis-bitcoin-news\/"},"modified":"2023-01-18T21:16:42","modified_gmt":"2023-01-18T21:16:42","slug":"digital-currency-group-suspends-dividends-amid-regulatory-trouble-with-subsidiary-genesis-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/digital-currency-group-suspends-dividends-amid-regulatory-trouble-with-subsidiary-genesis-bitcoin-news\/","title":{"rendered":"Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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According to a shareholders\u2019 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 \u201cunregistered offer and sale of securities to retail investors.\u201d<\/strong><\/p>\n

Digital Currency Group Takes Steps to Strengthen Balance Sheet by Suspending Dividends<\/h2>\n

On Jan. 17, 2023, Coindesk reporter Ian Allison published an article<\/a> 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 \u201cindependent operating subsidiary\u201d of DCG. Allison\u2019s report cites a shareholders\u2019 letter reviewed by the publication, which notes that the decision was made in response to the \u201ccurrent market environment.\u201d<\/p>\n

DCG added that the firm has \u201cbeen focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity \u2014 As such, we have made the decision to suspend DCG\u2019s quarterly dividend distribution until further notice.\u201d<\/p>\n

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\u2019s lending unit suspended<\/a> withdrawals and new loan originations. It was then reported<\/a> 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<\/a> detailed that Genesis was being probed by U.S. regulators, and Gemini formed a committee<\/a> with Houlihan Lokey to resolve the Genesis liquidity issues.<\/p>\n

Later, Gemini co-founder Cameron Winklevoss wrote a critical open letter<\/a> about the subject, and then followed up with another open letter<\/a> insisting that the DCG board remove Barry Silbert from his role as DCG\u2019s CEO. Silbert responded<\/a> 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<\/a> by the U.S. Securities and Exchange Commission (SEC) with conducting an unregistered offering.<\/p>\n

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<\/a> in terms of hashrate, and Grayscale manages the largest Bitcoin Trust<\/a> (GBTC) in the crypto industry.<\/p>\n

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Barry Silbert<\/a>, bitcoin trust<\/a>, Cameron Winklevoss<\/a>, ceo<\/a>, Charges<\/a>, CoinDesk<\/a>, crypto companies<\/a>, crypto lending<\/a>, Customers<\/a>, DCG<\/a>, Digital Currency Group<\/a>, dividend suspension<\/a>, dividends<\/a>, financial crypto publication<\/a>, Foundry USA<\/a>, Gemini EARN<\/a>, Genesis Global Capital<\/a>, Grayscale Investments<\/a>, independent operating subsidiary<\/a>, liquidity issues<\/a>, Loan Originations<\/a>, market environment<\/a>, Open Letter<\/a>, Portfolio<\/a>, SEC<\/a>, SEC charges<\/a>, securities sale<\/a>, subsidiary<\/a>, suspension<\/a>, unregistered<\/a>, Withdrawals<\/a><\/div>\n<\/div>\n

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.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie 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.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: 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<\/a> 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.<\/p>\n<\/div>\n

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