Crypto syndicate Digital Currency Group, announced that they were going to shut down their Wealth Management subsidiary HQ Digital. The crypto industry is losing the trust of people after the FTX collapse incident. This issue becomes a massive problem for DCG units.
“Due the state of the broader economic environment and prolonged crypto winter presenting significant headwinds to the industry, we made the decision to wind down HQ, effective January 31,” DCG said in a statement reported by The Information.
The statement further continued, “We’re proud of the work that the team has done and look forward to potentially revisiting the project in the future,” it added.
This is a sign of trouble, the company is currently facing a severe liquidity crisis at Genesis. The news came after Genesis trading slashed 30% of its workforce, citing financial struggles and the threat of bankruptcy.
DCG is the crypto empire that owns beleaguered crypto broker Genesis and digital asset manager Grayscale.
