Genesis Shifts Focus, Halts Cryptocurrency Trading Services

 

Genesis Shifts Focus, Halts Cryptocurrency Trading Services


Genesis, a well-known cryptocurrency lending firm and a subsidiary of Digital Currency Group (DCG), has made the decision to discontinue its spot and derivatives trading services for cryptocurrency assets through its unit based in the British Virgin Islands. This move indicates a shift in Genesis's focus and strategic direction within the crypto industry. It's worth noting that Genesis primarily operates as a lending platform, offering various crypto-related financial services, including lending and borrowing, and this decision appears to align with a refocusing of its core business operations.

Genesis has decided to wind down its digital asset trading services offered through all of its entities, citing business reasons for this decision. This includes discontinuing trading services provided by its international arm, Genesis Global Capital (GGC), based in the British Virgin Islands. The move signifies a strategic shift in the company's focus, with a greater emphasis on other aspects of its crypto-related business, such as lending and borrowing services.

Genesis Global Trading, another firm associated with Digital Currency Group (DCG) but not undergoing the same bankruptcy proceedings as Genesis Global Capital, made a similar decision in January to discontinue its crypto spot trading services. This move was also attributed to business reasons. However, GGC's international arm continued to provide spot and derivatives trading services until this recent decision to wind down these operations.

Genesis Global Capital temporarily halted withdrawals in November 2022, attributing the decision to "unprecedented market turmoil" at that time. In January, reports indicated that the company may have terminated up to 30% of its workforce before filing for Chapter 11 bankruptcy protection in New York. Additionally, both cryptocurrency exchange Gemini and Genesis faced charges from the Securities and Exchange Commission (SEC) for offering unregistered securities through Gemini's Earn program.

The bankruptcy and the complex web of legal and regulatory issues involving DCG subsidiaries and cryptocurrency companies, including Grayscale Investments, have garnered significant attention in the crypto industry over the past year. Genesis attributed its financial troubles to Three Arrows Capital and reported losses resulting from the collapse of the cryptocurrency exchange FTX.

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