Digital Currency Group is closing its subsidiary HQ Digital, which it started last year with a focus on asset management.
According to a memo obtained by The Information, DCG, the parent company of troubled crypto broker and lender Genesis Trading, has informed clients that HQ has ceased operations on January 2.
DCG Suspends Asset Management Unit Operations
The Digital Currency Group, founded by Barry Silbert, is shutting down HQ Digital, its asset management unit it launched in 2022.
A spokesperson for DCG told The Information that HQ is ending due to “the state of the broader economic environment and the prolonged crypto winter blowing headwinds across the industry.” He also added that the company may revisit the project in the future.
Founded last year to manage the money of crypto entrepreneurs and investors, HQ has managed more than $3.5 billion as of December, according to The Information report. Former Figure co-founder Alana Ackerson was CEO.
DCG subsidiary Genesis halted withdrawals and new loans following the collapse of FTX in November. The move has had knock-on effects for other crypto firms, including crypto exchange Gemini and its Earn product. DCG boss Barry Silbert recently had a public discussion with Gemini co-founder Cameron Winklevoss about it. Genesis began a new round of layoffs yesterday, cutting its workforce by 30 percent.