Genesis Global Trading, a U.S.-focused spot crypto trading business, will shut down its over-the-counter trading platform on Sept. 18.
In an email sent to clients, the company stated that all trades must be settled by Sept. 21, and all remaining open accounts will be closed by the end of the day on Sept. 30, CoinDesk reported Tuesday (Sept. 5). Genesis Global Trading is a subsidiary of DCG (Digital Currency Group), which also owns CoinDesk.
GGC International Limited, another trading-focused wing of the company, will continue to offer spot and derivative trading services, according to the report.
Reached for comment by PYMNTS, Genesis emailed: “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.”
Genesis Global Trading is one of the Genesis Global Holdco businesses that were not included in the Chapter 11 bankruptcy filing of Genesis Global Holdco and two of its lending business subsidiaries — Genesis Global Capital and Genesis Asia Pacific — in January.
Genesis was the main partner in the Gemini Earn program, where retail investors were to lend out cryptocurrency and get a fixed stream of returns. Gemini halted withdrawals from the program in November 2022 after Genesis said “unprecedented market turmoil” resulted in it lacking the liquidity to cover its redemption requests.
As PYMNTS reported at the time, the company was caught up in the adverse effects of the insolvency of FTX and its affiliates.
In January, both Genesis and Gemini were charged by the Securities and Exchange Commission (SEC) with offering unregistered securities. The SEC’s complaint centers on the Gemini Earn program, which the SEC said enabled the two companies to raise billions of dollars worth of crypto assets from hundreds of thousands of investors who weren’t provided the necessary information.
Earlier in January, as Genesis was considering filing for bankruptcy, the cryptocurrency lender laid off 30% of its staff across departments as it worked with an investment bank to evaluate its options and to move the business forward.
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