Genesis Global Trading, a United States-based firm, is set to discontinue its cryptocurrency spot trading service. This company, an affiliate of Barry Silbert’s Digital Currency Group (DCG), has been actively engaged in cryptocurrency spot trading since as far back as 2013. The decision to terminate this service has been attributed to “business considerations.”
Additionally, Genesis Global Trading (GGT) has officially announced the cessation of its cryptocurrency spot trading operations, scheduled for September 18. This follows GGT’s independence from the bankruptcy of Genesis Global Capital, a crypto lending arm of DCG, in January.
Genesis Global Trading to Cease Operations, Citing Voluntary Decision and Regulatory Coordination
As per reports from Bloomberg, GGT’s decision to shut down its trading services is voluntary. A company spokesperson conveyed, “This decision was made voluntarily and for business reasons. We are diligently collaborating with regulatory authorities to ensure an orderly cessation of our services.”
GGT’s journey in the cryptocurrency trading arena commenced in 2013, as per the information available on its official website. Notably, the company holds registration with the New York State Department of Financial Services. Meanwhile, GGC International, another DCG-affiliated entity, will continue to offer both spot and derivatives trading services, as reported by Bloomberg.
Genesis Global Capital filed for Chapter 11 bankruptcy in January, which was preceded by legal action from the United States SEC. The SEC alleged that the company had offered unregistered securities through its Earn program.
Genesis Global Capital’s Turmoil and Legal Battles
Interestingly, just a week before this, Genesis Global Capital had reduced its workforce by 30%. Furthermore, in November of the preceding year, the company temporarily suspended withdrawals. This action was attributed to financial challenges arising from the collapse of Three Arrows Capital and reported losses associated with the FTX collapse.
Moreover, the suspension of withdrawals by Genesis led to a legal dispute with the Gemini cryptocurrency exchange. Gemini had approximately $900 million invested in the Genesis Earn program. Simultaneously, the SEC also charged Gemini with conducting unregistered securities offerings, aligning it with Genesis in a legal battle.
DCG, led by Barry Silbert, is the parent company of Genesis Global Trading and also owns Grayscale Investments. Significantly, on August 29, Grayscale won a legal victory as the SEC overturned its ETF application rejection.
Read More:
El Salvador to Implement Bitcoin Curriculum in Schools by 2024
Security Worries Plague Stake Betting Platform Amidst $41 Million Cryptocurrency Outflow