US-based Genesis Global Trading will eliminate its crypto spot trading service
Genesis Global Trading (GGT) will close down its cryptocurrency spot trading service on Sept. 18, according to press reports. GGT is affiliated with the Digital Currency Group (DCG), but it was not affected when the parent company’s crypto lender, Genesis Global Capital, declared bankruptcy in January.
The GGT trading shutdown is voluntary, Bloomberg reported, quoting a company spokesman as saying:
“This decision was made voluntarily and for business reasons. We are working closely with regulatory authorities to coordinate an orderly discontinuation of services.”GGT began trading in 2013, according to its website. It is registered by the New York State Department of Financial Services. The DCG-affiliated GGC International will continue offering spot and derivatives trading services, Bloomberg said.
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Genesis Global Capital filed for Chapter 11 bankruptcy on Jan. 19, a week after the United States Securities and Exchange Commission (SEC) charged it with offering unregistered securities through its Earn program. A week before that, it had laid off 30% of its staff, and in November, it suspended withdrawals. It blamed the collapse of Three Arrows Capital for the last move. Genesis had also reportedly suffered losses in the collapse of FTX.
Genesis Global Trading, an affiliate of Barry Silbert’s Digital Currency Group, will wind down its crypto spot trading service as of Sept. 18 for “business reasons” https://t.co/tMIvk1ubcG
— Bloomberg (@business) September 5, 2023The suspension of Genesis withdrawals set off a legal conflict with the Gemini cryptocurrency exchange, which had $900 million tied up in the Genesis Earn program. Gemini was charged by the SEC with unregistered securities offerings at the same time as Genesis.
DCG, headed by Barry Silbert, also owns Grayscale Investments. That company scored a victory in court Aug. 29 when the SEC’s refusal to consider its application to create a Bitcoin spot exchange-traded fund was reversed.
GGT had not responded to an enquiry from Cointelegraph by publication time.
Magazine: Genesis files for bankruptcy, FTX explores a reboot, and Bitzlato news: Hodler’s Digest, Jan. 15-21