Connect with us

Hi, what are you looking for?

Investing

Genesis Terminates Crypto Spot and Derivatives Trading Services – What’s Going On?

Digital Currency Group’s that went bankrupt in January this year, continues to get hit by the bear crypto market. The digital assets lender is winding down its spot and derivative trading business completely.

Genesis has not explicitly stated the reasons behind the decision, however, a company spokesperson confirmed in an email statement that Genesis will cease offering derivatives trading immediately, while spot trading services will come to a halt on September 21.

“Genesis has decided to stop offering digital asset spot and derivatives trading through GGC International, Ltd. (GGCI),” a September 14 memo, read.

GCCI is a British Virgin Islands company, which is fully owned by Genesis Bermuda Holdco Ltd.

“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.”

Earlier this month, US-based Genesis Global Trading, affiliated with the Digital Currency Group and wasn’t affected by the parent company’s bankruptcy in January, shutting down its cryptocurrency spot trading service on Sept. 18.

The company said at the time that it is in talks with relevant regulatory bodies, including the New York Department of Financial Services and the US Securities and Exchange Commission (SEC).

Effects of Bankruptcy

At one point, Genesis was considered the largest derivative service provider, before the firm entrapped into a controversy with the Winklevoss brothers’ crypto exchange Gemini, which loaned $900 million of customer funds to Genesis.

Soon, these funds were stuck, preventing Gemini Earn customers from withdrawing assets, affecting over 340K customers. Cameron Winklevoss publicly accused Genesis CEO Barry Silbert of using ‘stall tactics’ to delay the company’s official bankruptcy.

To make matters worse for Genesis, the US SEC , on January 12, 2023, over offering unregistered securities through Gemini’s Earn product.

A week later, Genesis for Chapter 11 bankruptcy. However, the spot and derivatives trading as well as custody businesses were not part of the bankruptcy filing and continued to operate. The crypto market turmoil resulted in the closing of the trading services as well.

This post appeared first on cryptonews.com

You May Also Like

Editor's Pick

Real gross domestic product rose at a revised 3.2 percent annualized rate in the third quarter versus a 0.6 percent rate of decline in...

Editor's Pick

In Risky Business: Why Insurance Markets Fail and What to Do About It (Yale University Press, 2023), economists Liran Einav (Stanford), Amy Finkelstein (MIT),...

Editor's Pick

After the final lecture of my Fall 2022 International Economic Policy course (an undergraduate offering meant to introduce non-economics majors to the economics of...

Editor's Pick

For years the North Korean playbook was obvious to the world. The Democratic People’s Republic of Korea wanted to be the center of attention....



Disclaimer: impactofincome.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2023 impactofincome.com