DCG has closed its wealth management division due to the protracted crypto winter that is impeding corporate operations. The company said in a statement on January 6th.
“Due the state of the overall economic environment and prolonged crypto winter presenting significant headwinds to the industry, we made the decision to wind down HQ (…). We’re proud of the work that the team has done and look forward to potentially revisiting the project in the future.”
It is well known that HQ refers to the parent firm of Genesis' management division. The company had more than $3.5 billion in assets under management as of December 2022 prior to the closing notice. The company provided clients with investment advice by acting as a bridge between Grayscale products. Since HQ operates secretly, little is known at the moment about this business.
The FTX explosion caused some more collateral damage to HQ, which was shut down on January 2.
DCG also owns the well-known cryptocurrency news website CoinDesk, the bitcoin mining consulting company Foundry, the cryptocurrency exchange Luno, and the TradeBlock platform in addition to HQ, Genesis, and Grayscale. Nearly all of the top brands in the cryptocurrency sector are represented here.
DCG is currently experiencing a crisis as a result of FTX's demise. The most devastating hit came from its subsidiary Genesis.
Genesis has enlisted advisors to investigate possibilities, such as declaring Chapter 11 bankruptcy. Genesis' creditors have submitted claims totaling up to $1.8 billion as of early December.
The SEC and DOJ are also looking into internal transfers of funds between DCG and its subsidiaries, with a particular focus on Genesis.
