Digital Currency Group and its affiliates continue to be shaken by market turmoil.
Genesis, a crypto lending firm affiliated with Digital Currency Group (DCG), revealed on September 14th its intent to discontinue offering spot and derivatives crypto trading.
The decision is part of a voluntary winding-down across all of the firm's entities for strategic "business reasons."
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
Proof of Work vs Proof of Stake: Which is Better? (ANIMATED)
According to an official statement from Genesis, the company will cease its trading services, including operations through its international branch, Genesis Global Capital, located in the British Virgin Islands.
The decision echoes a similar move made earlier this year by Genesis Global Trading, another DCG-affiliated firm. At that time, Genesis Global Trading also voluntarily chose to halt its crypto spot trading services, while Genesis Global Capital continued to offer spot and derivatives trading.
The announcement comes after a series of challenges for Genesis and its affiliates. In November 2022, Genesis Global Capital suspended customer withdrawals, citing volatile market conditions.
In the following months, reports emerged that the company might have reduced its staff by as much as 30% before filing for Chapter 11 bankruptcy protection in New York. Regulatory difficulties have also surfaced, with Genesis and the crypto exchange Gemini facing charges from the Securities and Exchange Commission for allegedly offering unregistered securities.
DCG, the parent company of Genesis and Grayscale Investments, has had its share of recent complexities. Genesis blamed its financial downturn on Three Arrows Capital and stated that it incurred losses following the downfall of crypto exchange FTX.
In August, DCG reportedly reached an agreement allowing Genesis creditors to recover most of their funds. However, this agreement was later criticized by Genesis lenders as insufficient. Recently, DCG introduced a second plan aiming to compensate Gemini Earn users fully.
The decision by Genesis to cease its crypto trading services is a notable one, highlighting broader shifts within the DCG network and the crypto industry as a whole. As the industry continues to evolve, all eyes will be on how these developments impact Genesis and the wider crypto ecosystem.