Genesis International Trade to Cease Encryption Spot Trading Operations
Genesis International Trade, a subsidiary of Digital Currency Group (DCG), plans to stop its encryption spot trading Operations this month due to “undeclared” business reasons.
Voluntary Decision
This voluntary decision stems from a series of business considerations. A bankruptcy filing followed in January of another subsidiary of DCG, Genesis Global Holdco, which specializes in cryptocurrency lending services.
Cooperating with Authorities
According to a Bloomberg report, Genesis Global Trading will stop its trading service on September 18th. The company claims to be cooperating with authorities to ensure a structured closure of its slick trading business.
Continuation of Derivatives Trading Services
Despite this stop, the company has confirmed that its position and its derivatives trading services will continue without interruption. Genesis Global operates these services through GGC International, a trading registered company in the British Virgin Islands.
New York Department of State of Financial Services License
Notably, Genesis Global Trading owns a New York Department of State of Financial Services license. This license authorizes its involvement in virtual currency business activities.
Challenges Faced by DCG
Moreover, this decision to stop its spot trading efforts adds to the challenges faced by DCG of Barry Silbert and its subsidiaries. DCG experienced an operating loss of over $1 billion last year, mounting medium challenges and market disorder.
Lawsuit and Ultimatum
Remember, the US-based cryptocurrency platform Gemini filed a lawsuit against DCG and Silbert in July with allegations of fraudulent activities. The case came up three days after Gemini gave DCG an ultimatum to make the $1.46 billion payment debt it owes Gemini’s Earn customers.
Additional Challenges
DCG is also facing a lawsuit from bankrupt cryptocurrency firm FTX and a securities class action from creditors of Genesis, its subsidiary. In addition to these challenges, CoinDesk, another subsidiary of DCG, was placed up for acquisition.
