Genesis Global Trading Plans to Cease Crypto Spot Trading Operations
In an unexpected move, Genesis Global Trading, an affiliate of Digital Currency Group (DCG), will be discontinuing its crypto spot trading operations. This decision, made for undisclosed “business reasons,” comes after the bankruptcy filing of another DCG affiliate, Genesis Global Holdco, earlier this year.
The spot trading service will officially cease on September 18, but Genesis Global Trading assures customers that its spot and derivatives trading services will continue without interruption. It works closely with authorities to ensure a smooth closure of its spot trading business.
Registered in the British Virgin Islands, Genesis Global operates its trading services through GGC International. The company holds a valid license from the New York State Department of Financial Services, allowing it to engage in virtual currency activities.
Challenges Faced by DCG and its Subsidiaries
This decision to halt spot trading adds to the ongoing challenges faced by Digital Currency Group and its subsidiaries. The company experienced operational losses exceeding $1 billion last year, amidst a volatile market and increasing obstacles.
Notably, DCG is currently dealing with a lawsuit filed by Gemini, a U.S.-based crypto platform, alleging fraudulent activities. Furthermore, bankrupt crypto firm FTX has also taken legal action against DCG, while Genesis, another DCG subsidiary, faces a securities class action from its creditors. Additionally, DCG’s subsidiary CoinDesk is up for acquisition.
Hot Take
The discontinuation of Genesis Global Trading’s crypto spot trading operations raises questions about the stability and future of DCG and its affiliates. While their spot and derivatives trading services remain intact, the challenges and legal battles may impact their overall reputation and ability to thrive in the crypto market.
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