According to Bloomberg, the lending arm of DCG is in the process of filing for bankruptcy, as soon as this week possibly. Genesis suspended withdrawals a few days after FTX filed for bankruptcy, but its financial troubles started with the implosion of hedge fund Three Arrows Capital. Genesis reportedly lost hundreds of millions from 3AC collapsing.
Trouble continued for the lender, as it held funds from Gemini for its Earn program. A feud then started between the Winklevoss brothers, founders of Gemini, and Barry Silbert, founder of DCG. A class action lawsuit was filed by Gemini clients at the beginning of the month.
DCG told its shareholders this week that quarterly dividends would be suspended in order to conserve liquidity.
CoinDesk, a crypto news site owned by DCG, released a statement in which they confirm hiring Lazard as a financial adviser to look into a partial or total sale.