Genesis Ceases Crypto Trading Services in British Virgin Islands, Citing Voluntary Decision and Business Reasons
Summary:
Genesis, a subsidiary of Digital Currency Group (DCG), will cease offering spot and derivatives trading for crypto assets through its British Virgin Islands unit. The decision to wind down these trading services is voluntary and for business reasons. Genesis had been offering trading services through its GGC International arm. This development follows Genesis Global Trading's previous announcement in January to eliminate its crypto spot trading services. Genesis Global Capital, affiliated with DCG, halted withdrawals in 2022 due to market turmoil. The company's bankruptcy, legal issues, and regulatory entanglements have been widely discussed. Genesis attributed its collapse to Three Arrows Capital and losses from the failure of crypto exchange FTX. DCG reached an agreement with Genesis in August to allow creditors to recover most of their funds, but lenders have deemed the deal insufficient.
Genesis, a crypto lending firm and subsidiary of Digital Currency Group (DCG), will cease providing spot and derivatives trading services for crypto assets through its British Virgin Islands unit. The decision to wind down these trading services across all entities of Genesis is voluntary and based on business reasons, as stated by a Genesis spokesperson on September 14. It is worth noting that Genesis had been offering trading services through its GGC International arm in the British Virgin Islands. This move comes after Genesis Global Trading, another firm associated with DCG, announced in January that it would also discontinue its crypto spot trading services for similar reasons. At the time, GGC International was still offering spot and derivatives trading. Genesis Global Capital, which had previously halted withdrawals in November 2022, mentioned market turmoil as the reason. Reports from January indicated possible staff layoffs and subsequent Chapter 11 bankruptcy protection filing in New York. Additionally, the SEC charged both cryptocurrency exchange Gemini and Genesis for offering unregistered securities. The complex situation involving bankruptcy, legal issues, and regulatory matters between DCG subsidiaries and crypto firms, such as Grayscale Investments, has garnered attention in the industry. Genesis attributed its collapse to Three Arrows Capital and reported losses resulting from the failure of crypto exchange FTX. In August, DCG announced a preliminary agreement with Genesis to allow creditors to recover most of their funds. However, lenders later deemed the deal insufficient, as the firm owes approximately $3.5 billion to its top 50 creditors.
Published At
9/14/2023 6:38:17 PM
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