The digital- investment conglomerate Digital currency Group is closing down its institutional trading arm TradeBlock, citing harsh cryptocurrency market conditions. TradeBlock focused on supplying trade execution, pricing, and prime brokerage services to institutional investors.
DCG will shut down its prime brokerage subsidiary Tradeblock by the end of the 30 days, Bloomberg reported.
Prolonged cryptocurrency winter season
Digital currency Group cited the broader economy and prolonged cryptocurrency winter, along with the uncertain regulatory environment for the digital assets in the United States for shutting down its institutional trading platform side of the business. Earlier, DCG shut down its wealth-management division headquarters as it deals with Genesis’s bankruptcy.
Digital currency Group has been negotiating with creditors of its bankruptcy lending business, Genesis, before it took the decision to close down its TradeBlock subsidiary.
DCG likewise revealed losses exceeding $1 Billion a year ago from the cascading effect of FTX Trading Ltd and cryptocurrency collapse a year ago. In January, DCG’s cryptocurrency lending division Genesis Worldwide filed for Chapter 11 bankruptcy protection.
DCG misses $630 Million loan payment to Gemini
Gemini had landed $900 Million to now defunct Genesis, a subsidiary of DCG. As already stated earlier, the Winklevoss twins-owned cryptocurrency company and other creditors are seeing as whether to provide a forbearance to DCG as a means to avoid a default after it missed $630 Million loan payment. Gemini had earlier warned that DCG dangers default if it misses this payment.
Forbearance would enable DCG to temporarily reduce or halt payments, with the expectation of resuming them thereafter. Warning of supplying DCG with forbearance, Gemini stated, “consideration will be based in part on whether the parties believe DCG will engage in good faith negotiations on a consensual deal
