Genesis Discontinues Cryptocurrency Derivatives Trading Services
Genesis, a digital asset financial firm, has announced that it will no longer offer cryptocurrency derivatives trading services through its subsidiary GGCI. This decision applies to all of the companyโs business entities and wasย created voluntarily based on strategic business considerations. Nonetheless, Genesis has assured its clients that any open derivatives positions with GGCI will be honored until their expiry dates.
Streamlining Operations and Focusing on Core Areas
In recent weeks, Genesis has been implementing strategic changes and growing back its services to streamline operations and focus on core areas of expertise. The discontinuation of digital asset derivatives trading through GGCI aligns with the companyโs broader strategic realignment. Genesis has fully supported clients in managing and closing any remaining open positions, with the termination of derivatives trading services scheduled for September 21.
Reasons Behind the Decision
The reasons behind Genesisโ decision to discontinue cryptocurrency derivatives trading services have not been explicitly disclosed. Nonetheless, market observers speculate that factors such as regulatory uncertainties, market volatility, or shifting client demands may have influenced the companyโs strategic realignment.
Genesis Files Lawsuit Against Digitalย currency Group
Genesis Worldwide Financialย resources has filed a lawsuit against Digitalย currency Group (DCG) over the repayment of over $610 Million in loans that matured in May. Genesis is seeking to recover $500 Million borrowed by DCG under four loans and 4,550 Bitcoinย (BTC) valued at around $117 Million owed by affiliated Digitalย currency Group International under a fifth loan.
In Talks for Partial Repayment
Despiteย theย factย that Genesis has filed lawsuits against DCG, the firm is asย ofย now in talks with DCG for partial repayment. If a settlement is reached, Genesis plansย to fall the lawsuits. DCG owes more than $1.7 Billion to Genesis and other debtors, and an agreement has been proposed for DCG to pay $275 Million and obtain $1.16 Billion in new credit facilities to fulfill its obligations.
Bankruptcy Filing and Recovery Efforts
Genesis filed for Chapter 11 bankruptcy in January after halting withdrawals. The bankruptcy filing followed wholeย lotย of loans made by Genesis to hedge funds Threeย Arrowsย Capitalย (3AC) and Alameda Research, both of which likewise filed for bankruptcy in 2022. DCG expects to file a settlement with the bankruptcy court soon and intendsย to startingย the distribution of funds to creditors, progressing toward wholeย lotย of recovery for the companyโs creditors.
Hot Take: Genesis Shifts Focus Away from Cryptocurrency Derivatives Trading
Genesisโ decision to discontinue cryptocurrency derivatives trading services reflects the companyโs ongoing efforts to streamline operations and adapt to changing market conditions. Althoughย while the specific reasons behind this decision have not been disclosed, it is clear that Genesis is realigning its strategic priorities. By growing back certain services and focusing on core areas of expertise, Genesis intendsย to optimize its business operations and better serve its clients in a rapidly evolving digital asset landscape.
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