Fun

Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis

News Feed - 2023-01-19 05:01:10

Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis


According to a shareholders’ 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 “unregistered offer and sale of securities to retail investors.” Digital Currency Group Takes Steps to Strengthen Balance Sheet by Suspending Dividends


On Jan. 17, 2023, Coindesk reporter Ian Allison published an article 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 “independent operating subsidiary” of DCG. Allison’s report cites a shareholders’ letter reviewed by the publication, which notes that the decision was made in response to the “current market environment.”


DCG added that the firm has “been focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity — As such, we have made the decision to suspend DCG’s quarterly dividend distribution until further notice.”


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’s lending unit suspended withdrawals and new loan originations. It was then reported 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 detailed that Genesis was being probed by U.S. regulators, and Gemini formed a committee with Houlihan Lokey to resolve the Genesis liquidity issues.


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


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 in terms of hashrate, and Grayscale manages the largest Bitcoin Trust (GBTC) in the crypto industry. Tags in this story Barry Silbert, bitcoin trust, Cameron Winklevoss, ceo, Charges, CoinDesk, crypto companies, crypto lending, Customers, DCG, Digital Currency Group, dividend suspension, dividends, financial crypto publication, Foundry USA, Gemini EARN, Genesis Global Capital, Grayscale Investments, independent operating subsidiary, liquidity issues, Loan Originations, market environment, Open Letter, Portfolio, SEC, SEC charges, securities sale, subsidiary, suspension, unregistered, Withdrawals


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. Jamie Redman


Jamie 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. Sam Bankman-Fried Disputes FTX US "Shortfall" Claims, Critics Skeptical of Excel Spreadsheet Defense NEWS | 5 hours ago FTX Discovers $5.5B in Liquid Assets — Debtors Explore Ways to Maximize Recovery via Potential Sale of Subsidiaries, Real Estate NEWS | 9 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSam Bankman-Fried Disputes FTX US ‘Shortfall’ Claims, Critics Skeptical of Excel Spreadsheet Defense Next articleCoinbase Lists KAVA, Advancing Ethereum–Cosmos Interoperability Disclaimer: 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 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. Read disclaimerShow comments More Popular NewsIn Case You Missed ItDraft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament


A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Iran to Increase Penalties for Unauthorized Cryptocurrency Mining Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher

News Feed

Tesla CEO Elon Musk Warns a Major Fed Rate Hike Risks Deflation
Tesla CEO Elon Musk Warns a Major Fed Rate Hike Risks Deflation Tesla CEO Elon Musk has warned that a major rate hike by the Federal Reserve risks deflation in the U.S. economy. Mu
Stablecoin pegged to Hong Kong dollar unveiled
Josh O"Sullivan12 hours agoStablecoin pegged to Hong Kong dollar unveiledJingdong Coinlink Technology Hong Kong Limited unveils its plan to issue a Hong Kong dollar stablecoin, aiming for secure and cost-effective paymen
William Suberg9 hours agoBTC price knocks on $28.5K as trader says Bitcoin ‘reeks of disbelief’Bitcoin preserves its snap October gains, but BTC price analysis reveals reasons for staying level-headed about the futur
SEC Halts $62 Million Crypto Mining, Trading Scheme — DOJ Indicts Founder
SEC Halts $62 Million Crypto Mining, Trading Scheme — DOJ Indicts Founder The U.S. Securities and Exchange Commission (SEC) has halted a $62 million global cryptocurrency trading
DeFi Technologies launches Core chain validator, stakes 1,498 Bitcoin
Derek Andersen5 hours agoDeFi Technologies launches Core chain validator, stakes 1,498 BitcoinIn May, the partners launched the first yield-bearing BTC ETP in Scandinavia.965 Total views2 Total sharesListen to article 0:
UAE Prepares to Launch Nationwide Crypto Licensing System in Line With Global Standards
UAE Prepares to Launch Nationwide Crypto Licensing System in Line With Global Standards The United Arab Emirates (UAE) is getting ready to start issuing federal licenses to cryptoc
Bitcoin LTHs Start Taking Profits – Metrics Reveal Whales Are Actively Spending
Este artículo también está disponible en español. Bitcoin has reached new all-time highs for four consecutive days, hitting $99,500 just hours ago. The relentless surge h
Newsflash: Indian Regulators Officially Propose Total Cryptocurrency Ban
An Indian inter-ministerial committee on cryptocurrency and blockchain technology has finalized a report recommending both the establishment of a digital Rupee and a ban of cryptocurrencies.Ban Crypto, Establish E-Rupee
Brayden Lindrea5 hours agoBitcoin pioneer Hal Finney can’t be Satoshi Nakamoto, new analysis suggestsThe investigator, Jameson Lopp, compiled archived emails from 2010, data from a 10-mile race in California in 2009 an
Armaldia: Play, Buy Your Own NFTs, Make a Profit
Armaldia: Play, Buy Your Own NFTs, Make a Profit sponsored Facebook transformation to Meta a conceptual displacement towards Metaverse and Web 3.0, crypto and NFTs (non-fungible tok
Why is Dogecoin price up today?
Yashu Gola9 hours agoWhy is Dogecoin price up today?Dogecoin is surging on the prospects of interest rate cuts in September and the excitement of a potential pro-crypto stance from Donald Trump.1511 Total views1 Total sh
Rare Batman NFT Digital Art Collection Sells for Record 540 Ether
Rare Batman NFT Digital Art Collection Sells for Record 540 Ether A five-piece collection of Batman digital art has sold for a combined 540.86 ether, or about $2