Genesis Global Capital - a flagship subsidiary of digital currency venture capital giant Digital Currency Group (DCG) - has announced that it will be ceasing all crypto trading services as of next week.
Per the words of a company statement, the crypto-shutdown comes as:
“Genesis has decided to stop offering digital asset spot and derivatives trading through GGC International, Ltd. (GGCI). 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.”
The landmark event comes after a turbulent past year or so for Genesis Global Capital (GGC) and other crypto subsidiaries of DCG. First and foremost, GGC was forced to put a halt to withdrawals back in November 2022, amid the almighty ‘market turmoil’ that came from the collapse of fellow crypto titan FTX.
It also comes eight months after warnings were made when Genesis Global Trading (its separate lending division) stopped crypto spot trading services under similar, ‘voluntarily and for business reasons’ purposes. Here it also filed for bankruptcy protection, which in turn sent shockwaves across the DeFi space given that Genesis Global Trading was one of the most established crypto-lending entities on the market.
Further, Genesis has blamed its various bankruptcy, legal and regulatory entanglements (across its different divisions) on the falls of FTX and Three Arrows Capital (3AC).
The company also took a hit when being faced with investigations from the US Securities and Exchange Commission (SEC), which arose after itself and crypto exchange Gemini were said to have sold ‘unregistered securities’ through the latter’s ‘Earn’ program.
More recently, August saw DCG announce an ‘agreement in principle’ with Genesis to allow creditors to recover the majority of their funds. However, when rolled-out in practice, Genesis lenders described the deal as ‘wholly insufficient’- with the firm now reportedly owing around $3.5 billion to its top 50 creditors.
Finally, Genesis’ international spot and derivatives trading service closure - which will come into effect next week (September 21st) - comes a week after its US desk was closed.
Ultimately, GGC’s exit from the crypto services game signals the end of an era for one of DeFi’s (former) major players- as since launching in 2013, the company has handled a staggering $116.5 billion in spot trading transactions.
However in a case of ‘out with the old and in with the new,’ another crypto lending behemoth has now entered proceedings, with this being none other than world-leading crypto exchange Coinbase.
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This article is intended for educational purposes and is not financial advice.
