DCG closes Wealth Management Division

Talk of FTX peaked at the end of 2022, but in 2023, it was Digital Currency Group [DCG] that everyone was talking about. When Genesis Global Trading's parent company announced closing its HQ wealth-management division, the news made headlines again. It was reported that HQ had over $3.5 billion in assets. HQ explained its shutdown in a memo to a customer, citing the current market conditions as the main reason. The notice went on to say,

“Due to the state of the broader economic environment and prolonged crypto winter presenting significant headwinds to the industry, we made the decision to wind down HQ.”

It is important to note that the DCG-managed platform will shut down on January 31st, 2023. HQ also suggested “revisiting the project” in the memo.

“We’re proud of the work that the team has done and look forward to potentially revisiting the project in the future.”

Reportedly, the company's partners had no idea that this decision had been made at headquarters. In June of 2022, the Digital Currency Group declared the debut of HQ. This subsidiary was established to provide financial and risk management services, including private investment, estate planning, and insurance.

Genesis Global Trading's fall from grace over the past couple of weeks has been widely documented thanks to exposure from FTX. As Genesis continues its layoffs, other DCG-backed companies will likely do the same. DCG is the parent company of several cryptocurrency-related businesses, including Genesis, HQ, Grayscale Investments, mining and staking firm Foundry, end-to-end crypto trading platform TradeBlock, and cryptocurrency exchange Luno. According to another source, DCG invests in over 150 companies in 35 countries. So, if DCG were to fall, all these platforms would be in jeopardy.