DCG Has Shut Down A $3.5 Billion Asset Management

Key Points:

• DCG has shut down its asset management division called HQ.
• The long crypto winter is arguably the most significant obstacle to this move.
• Before that, HQ had more than $3.5 billion in assets under management.

DCG has shut down its wealth management division, citing the prolonged crypto winter that is hampering business operations, according to The Infomation.

“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.”

The company said in a statement on January 6th.

It is known that the management division of Genesis’ parent company is called HQ. Prior to the announcement of the closure, the business also had more than $3.5 billion in assets under management, as of December 2022. The business served as a bridge to Grayscale products in offering Investment advice for clients. HQ operates anonymously, so not much information is currently available about this company.

According to The Infomation, HQ partially suffered other collateral damage in the FTX explosion and was shut down on January 2.

In addition to HQ, Genesis, and Grayscale, DCG owns the popular crypto news site CoinDesk, Bitcoin mining consulting firm Foundry, crypto exchange Luno, and the TradeBlock platform. These are almost all the leading names in the crypto market.

As has been updated in previous Coincu News articles, DCG is currently reeling from the crisis following the collapse of FTX. Its subsidiary Genesis was the most brutal hit.

Genesis has also tapped advisors to explore options, including filing for Chapter 11 bankruptcy. As of early December, Genesis’ creditors have filed claims totaling up to $1.8 billion.

DCG is also under investigation by the SEC and DOJ regarding internal money transfers between it and its subsidiaries, with a significant focus on Genesis.

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