Digital Currency Group (DCG) is shutting down its wealth management subsidiary, HQ Digital, due to the “prolonged crypto winter” and the “broader economic environment,” according to a statement from a DCG spokesperson.
HQ Digital, which launched in June 2022, halted operations on January 2. The spokesperson said that DCG may revive the subsidiary in the future.
The report of HQ Digital’s shutdown comes amid issues at another DCG subsidiary, Genesis Global Capital, which halted withdrawals and loan redemptions in November and is reportedly exploring a possible bankruptcy filing.
Genesis has denied exposure to FTX’s FTT token and said it has no lending relationship with FTX, although it did admit to holding $175 million at FTX.
DCG also owns a number of other crypto companies, including CoinDesk, Grayscale, Foundry, Luno, and TradeBlock. So far, only Luno has been impacted, having discontinued interest-bearing wallets in November.
It is not yet known if the other subsidiaries are at risk.