Coin Edition -
- Genesis Trading laid off 30% of its workforce recently as it considers filing for bankruptcy.
- Firm suffers losses on loans it provided to Alameda and 3AC.
- Genesis’ parent company, DGC also shuts down its $3.5 billion wealth management division.
Genesis Trading, the beleaguered crypto lending arm of Barry Silbert’s Digital Currency Group (DCG), recently reduced its workforce by 30% as it faces mounting pressure from creditors and the threat of Chapter 11 bankruptcy. The firm reportedly suffered steep losses on loans it provided to now-bankrupt companies, including Alameda Research and 3AC.
Moreover, DGC also announced winding down its $3.5 billion Wealth Management Division (HQ), citing the “prolonged crypto winter.” This could be considered a repercussion of FTX‘s implosion in November last year. Allegedly, the company partners were blindsided by DCG’s decision to close HQ because, until December 2022, HQ oversaw approximately $3.5 billion in assets for crypto entrepreneurs and investors.
BREAKING: Genesis parent company DCG has shut down its $3.5 billion wealth management division.— whalechart.org (@WhaleChart)
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