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Digital Currency Group Suspends Dividend Payments to Maintain Liquidity

Venture capital company Digital Currency Group (DCG) has informed its shareholders that it is suspending quarterly dividend payments until further notice as it tries to maintain liquidity.

Now the company is focused on strengthening the balance sheet by reducing operating costs.. DCG's financial troubles stem from its crypto brokerage subsidiary Genesis Global Trading, which owes more than $3 billion to its creditors.. From November 16, Genesis customers cannot withdraw funds. Therefore, DCG intends to sell some assets from its portfolio in order to pay off.

Recall that earlier the Gemini exchange announced the termination of the loan agreement with Genesis Global Capital (GGC) and the closure of the Earn program, accusing its management of deceiving users.. Exchange co-founder Cameron Winklevoss called on the DCG board to fire current CEO Barry Silbert in an open letter.

Winklevoss said Genesis owes Gemini more than $900 million for funds provided to Genesis under the Earn program.. He also stated that DCG owed Genesis $1.7 billion.

Earlier it was reported that the US authorities launched an investigation into the activities of the Digital Currency Group, suspecting it of links to the collapsed FTX crypto exchange through Genesis Capital.