Genesis Global Trading, a subsidiary of the Digital Currency Group led by Barry Silbert, will voluntarily cease its crypto spot trading services on September 18 for undisclosed business considerations. This decision is unrelated to the Chapter 11 bankruptcy filed by its sister company, Genesis Global Capital, earlier this year.
The company spokesperson confirmed to Bloomberg that the shutdown is voluntary and aligns with business objectives, adding that they are collaborating with regulatory agencies to ensure a smooth termination of services. GGT has been operational since 2013 and is regulated by the New York State Department of Financial Services. Another affiliate under the Digital Currency Group, GGC International, will continue to offer spot and derivatives trading.
Genesis Global Capital had declared bankruptcy on January 19 following charges from the United States Securities and Exchange Commission (SEC) for illegal securities offerings via its Earn program. The bankruptcy came after a staff reduction of 30% and a pause in withdrawals, which was attributed to the failure of Three Arrows Capital. This led to a legal dispute with the Gemini cryptocurrency exchange, which had $900 million invested in the Genesis Earn program.
Meanwhile, another Digital Currency Group enterprise, Grayscale Investments, recently won a legal battle, overturning the SEC’s refusal to entertain its application for a Bitcoin spot exchange-traded fund.