Digital Currency Group’s Genesis, which declared bankruptcy in January this year, is still struggling due to the bear crypto market. The digital assets lender has decided to discontinue its cryptocurrency spot and derivative trading services.
The company has not given an exact reason for the shutdown, but a spokesperson confirmed in a statement that the last date for spot trading services will be September 21. A memo from September 14th said: “Genesis has decided to stop offering digital asset spot and derivatives trading through GGC International, Ltd. (GGCI).” GGCI is a British Virgin Islands company, owned by Genesis Bermuda Holdco Ltd. The spokesperson added: “This decision was made voluntarily and for business reasons. With this termination of services from GGCI, Genesis no longer offers trading services through any of its business entities.”
Also, US-based Genesis Global Trading, affiliated with the Digital Currency Group, announced that it will be ceasing its cryptocurrency spot trading service on September 18th. The company stated that they are talking with regulatory bodies such as the New York Department of Financial Services and the US Securities and Exchange Commission (SEC).
At one point, Genesis was the biggest derivative service provider, until a dispute erupted between the company and Gemini, which loaned around $900 million of customer funds to Genesis. As a result, over 340K customers were unable to access their assets. Cameron Winklevoss accused Barry Silbert, CEO of Genesis, of purposely delaying the bankruptcy proceedings.
The SEC then charged Genesis and Gemini on January 12, 2023, for offering unregistered securities through Gemini’s Earn product. Genesis filed for Chapter 11 bankruptcy the following week. Although the spot and derivatives trading and custody businesses were not part of the bankruptcy filing and continued to operate, the crypto market turmoil eventually led to the closure of all trading services.
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