With the fall of FTX and so many other issues plaguing the digital currency world, many are wondering what the fate of the Digital Currency Group (DCG) in Connecticut will be. The organization is arguably one of the largest in the space, and its partner – crypto lending platform Genesis – has recently been hit with rumors that bankruptcy is on the horizon after halting all activity. DCG Says It’s Doing Fine Despite this, regulators and economists in Connecticut remain confident in the organization’s abilities to stay afloat and get things done. David Lehman – commissioner of the state Department of Economic and Community Development – explained in a recent interview: They don’t live in isolation, and they’re trying to navigate a more challenging market environment as
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With the fall of FTX and so many other issues plaguing the digital currency world, many are wondering what the fate of the Digital Currency Group (DCG) in Connecticut will be. The organization is arguably one of the largest in the space, and its partner – crypto lending platform Genesis – has recently been hit with rumors that bankruptcy is on the horizon after halting all activity.
DCG Says It’s Doing Fine
Despite this, regulators and economists in Connecticut remain confident in the organization’s abilities to stay afloat and get things done. David Lehman – commissioner of the state Department of Economic and Community Development – explained in a recent interview:
They don’t live in isolation, and they’re trying to navigate a more challenging market environment as markets ebb and flow, and that clearly is going on now, especially with the recent news around FTX.
Like so many other companies in the crypto arena, DCG has had to make a few changes. It recently laid off about ten separate employees, bringing its staff numbers down from about 76 to 66 at the time of writing. However, this hasn’t stopped it from making new hires, suggesting that the initial layoffs were not because the company was suffering but because changes were in order.
DCG recently explained in a statement:
We recently made a series of internal changes to position DCG for its next phase of growth, including a streamlining of our departments alongside several promotions on our leadership team. DCG is fully committed to Stamford and Connecticut.
Not long ago, the company moved from Manhattan to the Connecticut town of Stamford. Barry Silbert – the founder and CEO of DCG – said:
We’re excited about building something special here in Stamford. We believe Stamford has the infrastructure, resources, and talent to create a hub for the next generation of fintech and crypto companies.
The firm has hinted it’s looking to create as many as 300 full-time jobs. Doing so could garner it a state-based grant of about $5 million, which would certainly help executives maintain all operations. Lehman continued with:
Connecticut taxpayers are not at risk for the business risk of DCG. If the jobs don’t transpire or they’re less (than expected), then ultimately the benefit is going to be less.
Getting Ready for the Future
Right now, no money has been given to the company, though the enterprise is still working on signing the right paperwork with city officials and doing what it needs to do to establish the right job waves. Amanda Cowie – a spokesperson for DCG – explained:
We have proceeded in good faith, submitting signed documents as recently as the summer of this year. We have a signed LOI and a financial plan with DECD, and a good working relationship with our business partners there.