Venture capital company Digital Currency Group (DCG) has told shareholders it is stopping its quarterly dividend payments till additional notification as it tries to preserve liquidity.According to the lettersent to investors on Jan. 17, the firm is concentrated on “reinforcing our balance sheet by minimizing operating costs and preserving liquidity.” DCG stated it was likewise considering selling a few of the possessions within its portfolio.Its financial problems are stemmed from the problems of a subsidiary, crypto broker Genesis Global Trading, which supposedly owes financial institutions more than$3 billion. Customers are presently unable to withdraw funds from Genesis after it stopped withdrawals on Nov. 16, which has actually prompted Cameron Winklevoss– on behalf of his exchange Gemini and its users with funds on Genesis– to require the board of DCG to get rid of Barry Silbert as CEO of the company in a Jan. 10 open letter. Make Update: An Open Letter to the Board of @DCGco pic.twitter.com/eakuFjDZR2!.?.!— Cameron Winklevoss(@cameron)January 10, 2023 According to Winklevoss, Genesis owes Gemini$900 million for funds that were lent to Genesis as part of Gemini’s Earn program, which uses consumers the ability to earn an annual yield of
as much as 7.4%. Winklevoss also declared DCG owed$ 1.675 billion to Genesis, although Silbert denied this.Soon after Winklevoss’s letter, the United States Securities and Exchange Commission(SEC)put fuel on the
fire, charging both companies on Jan. 12 with offering unregistered securities through the Earn program.Related: Crypto Biz: DCG’s’thoroughly crafted campaign of lies
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