Digital Currency Group Suspends Dividends Amid Regulatory Trouble With Subsidiary Genesis
Digital Currency Group (DCG), one of the world’s leading cryptocurrency institutions, has announced that it has suspended its regular dividend payouts amid a legal spat with their wholly-owned subsidiary, Genesis Trading.
What’s the Deal With DCG and Genesis?
It seems matters have come to a head between DCG and Genesis following a prolonged period of tension between the two entities. DCG had offered to acquire the parent holding company of Genesis in a deal that was signed in 2017. The problem arose when Genesis did not adhere to the terms of the deal, which resulted in litigation initiated by DCG.
Suspension of Dividend Payments
For obvious reasons, this legal dispute has caused serious disruption to the operations of DCG. The organization announced yesterday that it “will suspend regular dividend payments to shareholders pending a resolution to the dispute”.
Not All Bad News
Though the news of suspended dividends was certainly a blow to DCG shareholders, the organization has put a humorous spin on things by promising to repay the missed dividends in the form of free virtual hugs.
What’s Next For DCG?
DCG officials are hopeful that the dispute with Genesis can be resolved in the near future. In the meantime, DCG’s current shareholders should not worry too much – those virtual hugs will be quite valuable if the crypto bubble ever pops!
Takeaways:
- Digital Currency Group has suspended regular dividend payments due to a legal dispute with Genesis Trading.
- DCG shareholders can receive recompense in the form of virtual hugs.
- There is hope that the dispute can be resolved in the near future.
