Genesis Stops Providing Cryptocurrency Trading Services
Genesis, a subsidiary of Digital Currency Group (DCG), has chosen to stop trading cryptocurrency spot and futures through its British Virgin Islands branch. According to a Genesis representative on September 14, the decision is voluntary and for business reasons. Genesis had been providing trading services in the British Virgin Islands through its worldwide arm, Genesis Global Capital (GGC).
This follows a similar move made in January by Genesis Global Trading, another DCG-affiliated entity. Genesis Global Trading had likewise voluntarily and for commercial reasons discontinued its crypto spot trading services. GGC's international arm was still offering spot and futures trading at the time.
Due to severe market instability, GGC already halted withdrawals in November 2022. Significant layoffs were reported in January, followed by a Chapter 11 bankruptcy filing in New York. The Securities and Exchange Commission charged Genesis and cryptocurrency exchange Gemini with marketing unregistered securities through Gemini's Earn programme.
Over the past year, the bankruptcy, legal troubles, and regulatory concerns involving numerous DCG subsidiaries and crypto businesses have gotten a lot of attention in the sector. Genesis blamed its demise on losses made by the failure of crypto exchange FTX, in which Three Arrows Capital was involved.
DCG announced in August a preliminary arrangement with Genesis that would allow creditors to recover the majority of their funds. However, lenders later criticized the agreement as completely inadequate, given that Genesis apparently owes $3.5 billion to its top 50 debtors.