Crypto lending firm Genesis has announced that it will cease offering crypto trading services through its British Virgin Islands affiliate. This decision comes as Genesis Global Trading (GGT), a company connected to parent company Digital Currency Group (DCG), also announced that it will stop providing cryptocurrency spot trading services.
Genesis has been providing trading services through its international division, Genesis Global Capital (GGC), which will now no longer offer trading services for digital assets. According to a spokeswoman from Genesis, the company made this decision voluntarily and for business reasons.
The move follows the bankruptcy and legal troubles surrounding Genesis and its affiliated companies. In November 2022, GGC suspended withdrawals citing “unprecedented market turmoil” before eventually filing for bankruptcy in January 2023. Reports from January also suggested that the company may have fired 30% of its employees in order to market unregistered securities through Gemini’s Earn program.
Legal and regulatory entanglements have plagued DCG subsidiaries, including Genesis, over the past year. Following the collapse of the cryptocurrency exchange FTX, Genesis experienced losses and attributed them to Three Arrows Capital.
In August, Genesis and DCG reached an agreement in principle that allowed creditors to recover the majority of their money. However, Genesis lenders criticized the agreement, claiming that the company owed its top 50 creditors a substantial $3.5 billion.
The decision by Genesis to cease offering crypto trading services reflects the challenging times for the firm and the wider crypto industry. It remains to be seen how this will impact the company’s future operations and whether it will be able to recover from its financial troubles.
Overall, the cryptocurrency market continues to face scrutiny and challenges, with regulatory actions and legal proceedings affecting various companies within the industry. As the industry matures, businesses must navigate these complex landscapes to ensure their sustainability and compliance with regulations.