Genesis Shutdown Decision – Halts Crypto Trading
In a surprising move that sent shockwaves through the cryptocurrency industry, Genesis, a crypto-trading business owned by Digital Currency Group (DCG) has decided to cease all trading operations.
This decision affects the U.S. desk and international spot and derivatives trading operations. A spokesperson for Genesis revealed that the company had voluntarily made this choice due to business reasons. The announcement came shortly after Genesis faced significant challenges stemming from the collapse of Three Arrows Capital and FTX last year.
Genesis: A Victim of Market Turbulence
Genesis, once a prominent player in crypto-trading space, found itself in dire straits following Three Arrows Capital’s and FTX’s collapse in the previous year. These incidents severely impacted Genesis, ultimately leading to its decision to halt trading activities.
While the company’s lending division had filed for bankruptcy protection earlier in the year, the trading arm initially remained unaffected.
Genesis’ Statement and Implications
An official statement from Genesis stated that the company would no longer offer digital asset spots and derivatives trading through its subsidiary, GGC International, Ltd. (GGCI). While the statement cited “business reasons” for this decision, it did not provide specific details. Furthermore, the move signifies that Genesis will no longer offer any trading services through its various business entities.
Key Dates and Closure Details
Genesis Global Capital’s international services will officially cease on September 21, 2023. Simultaneously, its U.S. desk will halt operations on September 18, 2023. All trades must be settled by September 21, and customer accounts will be closed by September 30.
Genesis’ decision to halt its crypto trading services is part of a broader series of challenges faced by Digital Currency Group. Genesis owes more than $3.5 billion to creditors, and its parent company, DCG, has been embroiled in legal disputes, including a lawsuit filed by Gemini’s founders. This internal conflict has exacerbated the financial complexities within DCG.
Genesis and DCG: A Complex Relationship
Genesis’ financial woes and subsequent shutdown have impacted the company, DCG, and its various subsidiaries. DCG has already closed two businesses, HQ Digital and TradeBlock, in 2023. Additionally, its wallet service, Luno, is scaling back its services in response to upcoming regulations, and interest-bearing features were discontinued in late 2022.
Genesis’ decision to halt crypto trading operations underscores the ongoing challenges within the cryptocurrency industry, where even established players are not immune to market volatility and regulatory pressure. As the crypto landscape continues to evolve, the fate of other market participants may remain uncertain, further highlighting the need for adaptability and resilience in this ever-changing space.
What Can I Do If My Money Is Stuck?
You could be one of the FTXs, Genesis’ or any other exchange creditor. As such, you need to apply for your fair share so you can be reimbursed once the case is settled and the funds are distributed.
To avoid any potential problems, you can contact our crypto cyber department. Our dedicated service team can help you trace all your digital coins using CipherTrace software and prepare legal letters for all the institutions involved. Don’t let yourself lose what’s rightfully yours.