Digital Currency Group (DCG) has just announced the closure of HQ Digital, its asset management subsidiary, The Information has reported with reference to a memo.
According to the document, the division ceased operations on January 2. The company reportedly made the decision due to "a prolonged crypto winter, which creates significant hurdles for the industry," as well as the economic situation.
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HQ Digital was managing more than $3.5 billion, so the company does not rule out that DCG may pick up the project in the future.
The crypto community had previously raised concerns about the sustainability of the entire group of companies amid the collapse of cryptocurrency exchange FTX. OTC platform Genesis Trading, which is part of Digital Currency Group, has previously suspended withdrawals and new loans, and then has attempted to raise $1 billion in emergency funding.