The cryptocurrency conglomerate suffered a loss of over $1 Billion last year.
Digital currency Group (DCG), the parent company of CoinDesk, is closing down its trade execution and prime brokerage services unit, TradeBlock, citing cryptocurrency winter and regulatory uncertainties.
The shutdown of the unit, which provides trading services to institutional investors, will be effective as of May 31, a DCG spokesperson informed CoinDesk in an emailed statement. ” Owing to the state of the broader economy and prolonged cryptocurrency winter, along with the challenging regulatory environment for digital assets in the United States, we made the decision to sunset the institutional trading platform side of the business, known as TradeBlock, effective May 31, 2023,” the spokesperson said.
The story was 1st informed by Bloomberg.
TradeBlock was acquired in 2020 by CoinDesk, and was thereafter spun out as its own standalone business. CoinDesk kept the index data business from the acquisition, which was rebranded as CoinDesk Indices, which “has proven to be a successful acquisition,” the spokesperson said.
The move comes as the giant cryptocurrency conglomerate found itself in a difficult market environment after its subsidiary Genesis Worldwide Holdco filed for bankruptcy in the year. Earlier these 30 days, DCG missed a $630 Million debt payment owed to Genesis, while its CFO resigned in April.
DCG informed a loss of $1.1 Billion in 2022 as it suffered the effects of the cryptocurrency bear market and ended the year with just $262 Million in cash.