Digital Currency Group to shutter wealth management unit: The Information
Quick Take
- HQ Digital ceased operations on Jan. 2, according to a memo obtained by The Information.
- It managed $3.5 billion as of December.
Barry Silbert’s Digital Currency Group is shuttering HQ Digital, a subsidiary focused on wealth management that it launched last year.
DCG, parent of troubled crypto broker and lender Genesis Trading, informed customers that HQ ceased operations on Jan. 2, according to a memo obtained by The Information.
A spokeswoman for DCG told The Information that HQ is winding down due to the “state of the broader economic environment and prolonged crypto winter presenting significant headwinds to the industry,” adding that the company may revisit the project in the future. DCG did not immediately respond to a request for comment from The Block.
Launched last year to manage the money of crypto entrepeneurs and investors, HQ managed more than $3.5 billion as of December, according to The Information report. Former Figure co-founder Alana Ackerson was its CEO.
DCG subsidiary Genesis halted withdrawals and new loan originations after the collapse of FTX in November — a move that had knock-on effects for other crypto firms, including crypto exchange Gemini and its Earn product. DCG boss Barry Silbert recently become embroiled in a public tiff with Gemini co-founder Cameron Winklevoss over the matter. Genesis began a new round of layoffs yesterday, reducing its workforce by 30%.
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