- Genesis, the crypto-lending company gravely affected by FTX’s collapse, has ended its trading operations.
- Genesis has left the crypto trading industry as its trading divisions wind down.
Genesis Trading Divisions Wind Down
In two weeks, Digital Currency Group, the broker behind Genesis, has voluntarily shut down the trading operations of its subsidiaries, Genesis Global Trading and Genesis Global Capital.
On September 6th, Genesis Global Trading, the U.S. spot trading business, shut down its over-the-counter trading operations abruptly.
According to a spokesperson, the international spots and derivatives trading operations are also shutting down.
In an email sent to its clients, Genesis Global Trading announced its decision to cease its trading operations this month for business reasons.
“Genesis has decided to stop offering digital asset spot trading through Genesis Global Trading Inc. (GGT). Spot and derivatives trading services through GGC International Limited remain operational. This decision was made voluntarily and for business reasons. We are working closely with regulatory authorities to coordinate an orderly discontinuation of services.”
The email also encouraged the clients to settle all open trades by September 21st, and all open accounts will be closed by September 30th.
According to the email, Genesis Global Capital, another trading subsidiary of Digital Currency Group(DCG), will proceed with the trading business.
Surprisingly, one week after Genesis Global Trading stopped offering its trading services, Genesis Global Capital announced its decision to cease trading operations.
“Genesis has decided to stop offering digital asset spot and derivatives trading through GGC International, Ltd. (GGCI). This decision was made voluntarily and for business reasons. With this termination of services from GGCI, Genesis no longer offers trading services through any of its business entities,” the statement reads.
With its two trading arms out of business, Genesis can no longer offer trading services through any business unit.
An email was sent to customers to notify them of the decision to shut down the business.
“If you have open derivatives positions with GGCI, these positions will be honored through expiry, and we will support transactions with you that close or help you manage any such open positions,” the email reads.
In a second-quarter report by Genesis, it was disclosed that the trading business was affected by the harsh market conditions.
“ With spot market liquidity suffering and spot order book depth chronically flagging, it has become increasingly apparent that a significant portion of the future growth of crypto volumes will be in derivatives,” a second-quarter report by Genesis stated.
When Genesis’ lending arm filed for bankruptcy in January, its trading business was kept out of the process.
Genesis’ decision to withdraw from the crypto trading scene followed a series of unfortunate events.
After Three Arrows Capital and FTX crashed in 2022, Genesis was gravely affected.
In January, Genesis was charged by the Securities and Exchange Commission for offering unregistered securities through its Gemini Earn Program.
Genesis also laid off 30% of its workforce in an attempt to move forward with the business before declaring bankruptcy in January.
The crypto lender was caught up in a crossfire of dwindling finances, crypto winter, and regulatory crackdown.
