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.
Source: Cryptocurrency - investing.com
