Genesis Global Trading Ceases Spot Trading
Genesis Global Trading, an affiliate of Digital Currency Group (DCG), has announced its intention to discontinue its crypto spot trading operations this month, citing undisclosed “business reasons.” This voluntary decision comes on the heels of a series of business evaluations and follows the January bankruptcy filing of another DCG affiliate, Genesis Global Holdco, which specializes in cryptocurrency lending services.
Genesis Global, an affiliate of Digital Currency Group, has announced plans to discontinue its crypto spot trading serviceshttps://t.co/RIqoFfNK9Q
— crypto.news (@itscrypto_news) September 6, 2023
Transition from Spot to Derivatives
According to a report by Bloomberg, Genesis Global Trading will halt its spot trading service on September 18. The company is reportedly working closely with relevant authorities to ensure an orderly closure of its spot trading business. It’s important to note that, despite the cessation of spot trading, Genesis Global Trading has reassured its clients that its spot and derivatives trading services will continue without interruption. These services are operated through GGC International, a trading firm registered in the British Virgin Islands.
Genesis Global Trading holds a New York State Department of Financial Services license, which authorizes its involvement in virtual currency business activities. This regulatory approval underscores the company’s commitment to maintaining compliance within the industry.
Lawsuits and Losses
This decision to exit the spot trading sector adds to the array of challenges faced by DCG and its subsidiaries, including Genesis Global Trading. DCG reported operational losses of over $1 billion last year amid a backdrop of market turmoil and growing industry challenges.
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Earlier this year, Gemini, a U.S.-based cryptocurrency platform, filed a lawsuit against DCG and its founder, Barry Silbert, alleging fraudulent activities. This legal action was initiated just three days after Gemini issued an ultimatum to DCG to repay the $1.46 billion debt owed to Gemini’s Earn customers. DCG is also grappling with legal actions from bankrupt crypto firm FTX and a securities class action lawsuit brought by creditors of Genesis, one of its subsidiaries. In addition to these legal challenges, CoinDesk, another subsidiary of DCG, has been put up for acquisition.
