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"Digital Currency Group has informed its shareholders the firm is suspending dividends until further notice. "In response to the current market environment, DCG has been focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity. As such, we have made the decision to suspend DCG's quarterly dividend distribution until further notice," DCG said in a letter to shareholders sent on Tuesday."

Digital Currency Group is reportedly facing another probe into its financial dealings with subsidiary Genesis Global Capital - this time by New York state's top law enforcement officer. Federal prosecutors in Brooklyn and the Securities and Exchange Commission are already conducting investigations and seeking interviews with potential witnesses at Genesis and its parent company, DCG. Genesis suffered heavy losses last year during the crypto market downturn, primarily after the collapse of digital-assets hedge fund Three Arrows Capital and crypto exchange FTX.

Digital Currency Group is reportedly facing another probe into its financial dealings with subsidiary Genesis Global Capital - this time by New York state's top law enforcement officer. Federal prosecutors in Brooklyn and the Securities and Exchange Commission are already conducting investigations and seeking interviews with potential witnesses at Genesis and its parent company, DCG. Genesis suffered heavy losses last year during the crypto market downturn, primarily after the collapse of digital-assets hedge fund Three Arrows Capital and crypto exchange FTX.

Among one of the most significant firms entangled in the FTX collapse is the Digital Currency Group, whose subsidiaries include Genesis, Grayscale, CoinDesk, Foundry, and other companies. Genesis, in particular, is under the spotlight because, as an institutional lender, they may have extended capital to entities embroiled with the FTX/Alameda collapse. Genesis has at least $175M stuck on FTX, and also had large exposure including unsecured loans to Three Arrows Capital (3AC) before it collapsed in June. On November 16th, Genesis halted withdrawals and new loan originations following FTX's fall... Genesis connects institutional investors to digital asset markets allowing them to trade, borrow, hedge and more. Genesis is heavily used throughout the industry, including by centralized exchanges like Gemini for their "earn" program which allows customers to earn yield off of their holdings. Last week, Gemini Earn halted withdrawals after Genesis halted withdrawals... Also, Genesis's lending arm, which is widely integrated into various services that offer yield on crypto, may have been affected by offering loans that FTX or Alameda will not repay. DCG has been allegedly looking to raise capital, up to $1B, with little interest from investors balking at a previously undisclosed $1.1B loan from DCG to Genesis, with Grayscale being the only assets receiving any meaningful interest.

Digital Currency Group (DCG) owned Genesis Global Holdco LLC filed for Chapter 11 bankruptcy protection. Genesis owes over $3.5 billion to its top 50 creditors, including crypto exchange Gemini. The bankruptcy could have broader implications because DCG also owns digital assets manager Grayscale, which operates the Grayscale Bitcoin Trust (GBTC), which has $10 billion-plus in assets under management. There would be serious crypto market  repercussions if the Genesis bankruptcy somehow leads to the liquidation of 600,000+ bitcoin holdings.

Digital Currency Group (DCG) is trying to find new banking partners for portfolio companies following the collapse of Silicon Valley Bank, Signature Bank, and Silvergate. Santander, However, CoinDesk reports that Bridge Bank, HSBC, Deutsche Bank, BankProv, Bridge Bank, Mercury, Multis, Series Financial, and Western Alliance are still willing to connect with crypto firms. On the other hand, those banks may restrict some services for crypto firms, for instance, brokerage and money market services and the ability to wire money to third parties.

"Crypto collapse: Gemini vs DCG, New York charges Mashinsky in Celsius, Voyager sale troubles, Silvergate troubles, Wintermute."

"Greyscale operates a relatively simple model of buying and holding crypto assets and collecting a nice fee for that service. It can't cost much to run Greyscale… so what exactly has DCG been doing with the revenue from their Greyscale products and the capital they have raised by equity sales and debt issuances?"

OXT Research has taken steps to confirm Grayscale's self-reported Bitcoin (BTC) holdings that back its GBTC closed-end fund, based on public data and blockchain forensics. It confirmed that the approximate balance of 633,000 BTC held was held at Coinbase Custody, to conclude that Grayscale's self-reporting is credible. OXT Research speculates that Grayscale might not want to disclose their addresses is that they want to avoid providing information about who their most used counterparties are, which could be its parent (DCG) and Genesis Trading, which is teetering on the edge of bankruptcy.

Genesis Global Capital, the cryptocurrency lending unit of Digital Currency Group (DCG), is reportedly laying the groundwork for a bankruptcy filing as soon as this week. It has been in confidential negotiations with various creditor groups amid a liquidity crunch, and has warned that it may need to file for bankruptcy if it fails to raise cash. Genesis suspended withdrawals in November, soon after crypto exchange FTX - where Genesis held some of its funds - filed for bankruptcy.

"The troubled brokerage Genesis Global has $2.8 billion in outstanding loans on its balance sheet, with about 30% of its lending made to related parties including its parent company, Barry Silbert's Digital Currency Group, according to people familiar with the matter."

"Bitfinexed thinks the USD being stuck at Binance is why the price of bitcoin has gone from $16,000 a few weeks ago to over $20,000. Bitcoin trading is that thin, and the bitcoin price is pretty much set at Binance. When you can't get cash off an exchange, you trade whatever you've got for bitcoin, so you can move it to Coinbase and cash out. The demand pushes up the price."

Crypto collapse: DCG's problem is Grayscale, FTX Bahamas agreement, DeFi trading arrest, Silvergate Bank, Huobi, Binance