Claim BonusDigital Currency Group Halts Quarterly Dividends Amid Genesis Lawsuit
Digital Currency Group (DCG) announced that it is suspending its quarterly dividend payouts, “until further notice” as it aims to preserve liquidity.
The firm cited that it is currently focusing on “strengthening our balance sheet by reducing operating expenses and preserving liquidity,” written in the letter shared with stakeholders dated Jan 17, as per a report by Bloomberg.
Genesis owes $3 billion to its creditors
Digital Currency Group’s crypto brokerage firm Genesis owes over 3 billion USD to its creditors. It halted the withdrawals on November 16, 2022, following the collapse of FTX. DCG is considering selling some of its assets to be able to compensate.
The ongoing scenario has pushed DCG into a battle with Gemini. Gemini’s co-founder Cameron Winklevoss asked to remove the CEO Barry Silbert in an open letter. According to Winklevoss, Gemini’s customers have been unable to access the 900 million USD since Genesis halted the withdrawals. Genesis owes this amount to Gemini. The co-founder also stated that DCG owes his firm over 1.6 billion USD, which has been denied by Silbert.
Also read: Sam Bankman-Fried Remains Firm That FTX US Is Still Solvent
SEC sues DCG’s subsidiary and Gemini
On January 12, SEC charged both Gemini and Genesis with an “unregistered offer and sale of securities to retail investors.” The SEC claims the asset lending program by Gemini “Earn” is a security. Both firms are accused to have raised billions of dollars worth of crypto assets through this lending program from thousands of investors.
FTX filed for bankruptcy on November 11 in the U.S. Its boss Sam Bankman-Fried is accused of money laundering, fraud, and violation of campaign laws. Arrested from the Bahamas, he was later extradited to the U.S. after SEC and the trade commission charged him with 8 financial crimes. Bankman-Fried pleaded not guilty, however, his two counterparts Gary Wang and Caroline Ellison accepted the charges.
Also read: This Crypto-Focused Bank Lost $1 Billion Due To FTX Collapse
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Senator Kennedy Confirms CLARITY Act Markup Next Week After Bipartisan Senate Meeting
- Tom Lee’s BitMine Increases Staked ETH To $2.5B as Ethereum Staking Queue Surges
- Trump Tariffs: U.S. Supreme Court Sets January 9 for Possible Ruling
- Fed’s Stephen Miran Backs 100+ Bps of Rate Cuts as Crypto Traders Price In Only Two
- Why is SUI Price Up Today (Jan 6)
- Here’s Why Solana Price Will Hit $200 This Month
- Bitcoin Price Rally Could Hit $107K, Legendary Trader Predicts Ahead of US Jobs Data
- Top 3 Crypto Prices Prediction: Dogecoin, Cardano, and Chainlink Poised for Big Moves
- Ethereum Price Eyes $4K as BitMine Stakes $2.5B in ETH
- Bitcoin and Gold Price Prediction as Venezuela Conflict Fuels Investor Uncertainty
- Expert Predicts a 246% Shiba Inu Price Surge as a Rare Pattern Forms
