Digital Currency Group Halts Quarterly Dividends Amid Genesis Lawsuit

The digital money group (dcg) announced that it was suspending its quarterly dividend payments, "until further notice" in order to safeguard 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. He stopped withdrawals on November 16, 2022, as a result of the collapse of ftx. Dcg plans to sell a portion of its assets in order to clear.

The scenario in progress pushed dcg into a battle with the gemini. Gemini’s co-founder Cameron Winklevoss asked to remove the CEO Barry Silbert in an open letter. Winklevoss said Gemini customers have not been able to access the $900 million since Genesis stopped withdrawals. Genesis owes all this to Gemini. The co-founder also said that dcg owes his company more than $1.6 billion, something Silbert denied.

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 alleges that the Gemini "Earn" asset loan program is a value. Both companies are accused of amassing billions of dollars in assets as a result of this loan program with thousands of investors.

Ftx went bankrupt in the United States November 11th. His boss, Sam Bankman-Fried, is charged with money laundering, fraud and contravening election laws. Arrested from the Bahamas, he was subsequently extradited to the United States after the second and the trade committee accused him of eight financial crimes. Bankman-Fried pleaded not guilty, however, his two counterparts Gary Wang and Caroline Ellison accepted the charges.

Also read:This crypto bank lost a billion dollars because of the collapse of the FTX.