{"id":169755,"date":"2023-01-18T13:26:17","date_gmt":"2023-01-18T13:26:17","guid":{"rendered":"https:\/\/precoinnews.com\/?p=169755"},"modified":"2023-01-18T13:26:17","modified_gmt":"2023-01-18T13:26:17","slug":"dcg-suspends-dividends-amid-financial-crisis-heres-who-might-bail-them-out-coinpedia-fintech-news","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/dcg-suspends-dividends-amid-financial-crisis-heres-who-might-bail-them-out-coinpedia-fintech-news\/","title":{"rendered":"DCG Suspends Dividends Amid Financial Crisis, Here\u2019s Who Might Bail Them Out! – Coinpedia Fintech News"},"content":{"rendered":"
The Digital Currency Group (DCG), a leading conglomerate in the cryptocurrency industry, has informed its shareholders that the company will not be distributing dividends until further notice. <\/p>\n
In a letter to shareholders, the company stated that its primary focus is on improving its balance sheet by reducing operational expenses and ensuring sufficient liquidity.<\/p>\n
Recently, DCG has been impacted by the prolonged downturn in digital assets and the fallout from the collapse of the FTX exchange. These events have had a negative effect on the broader cryptocurrency market. <\/p>\n
Furthermore, one of the company’s subsidiaries, Genesis Capital, has not been making reimbursements since November 2022 and has warned that it may become bankrupt without additional funding.<\/p>\n
The founder of DCG, Barry Silbert, is currently engaged in a contentious dispute with the Winklevoss brothers, who founded the Gemini cryptocurrency exchange. Customers of Gemini have been unable to access the $900 million in funds held with Genesis. <\/p>\n
The exchange and other creditors of Genesis have reportedly been holding secret meetings to devise a solution to the subsidiary’s financial difficulties. Additionally, Cameron Winklevoss has alleged that DCG owes Genesis $1.67 billion.<\/p>\n
In a recent development, Justin Sun, a prominent figure in the cryptocurrency industry, has announced that he is willing to use $1 billion of his own money to acquire assets from Digital Currency Group (DCG). According to Sun, he may pay that amount, based on DCG’s valuation.<\/p>\n
According to industry analysts, DCG, valued at around $10 billion in 2021, manages an estimated $50 billion in assets. <\/p>\n
On the other hand, Sun’s net worth is estimated to be between $250 million and $3 billion, depending on the method used and whether or not conventional assets are included. Therefore, any potential transaction would only involve a small portion of DCG’s assets.<\/p>\n