Digital Currency Group Suspends Dividend Payments to Maintain Liquidity

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Venture company Digital CurrencyGroup (DCG) informed its shareholders that it would suspend quarterly dividend payments until further notice as it attempts to preserve liquidity.

The company is now focused on strengtheningbalance by reducing operating expenses. DCG's financial problems stem from its subsidiary crypto brokerage firm Genesis Global Trading, which owes its creditors more than $3 billion. Since November 16, Genesis clients have been unable to withdraw funds. Therefore, DCG intends to sell some assets from its portfolio to pay down.

Let us recall that earlier the Gemini exchange announcedtermination of a loan agreement with Genesis Global Capital (GGC) and the closure of the Earn program, accusing its management of deceiving users. Exchange co-founder Cameron Winklevoss called on the DCG board to fire current CEO Barry Silbert in an open letter.

Winklevoss said Genesis owes Gemini more than $900 million for funds that were provided to Genesis under the Earn program. He also stated that DCG owes Genesis $1.7 billion.

Earlier it was reported that American authorities began an investigation into the activities of Digital Currency Group, suspecting it of connections with the collapsed FTX crypto exchange through Genesis Capital.