Genesis Global Trading (GGT) will shutter its crypto spot trading operations in September.
A spokesperson for Genesis, which is a subsidiary of Barry Silbert’s Digital Currency Group, said that the decision was made “voluntarily and for business reasons.”
“We are working closely with regulatory authorities to coordinate an orderly discontinuation of services,” the spokesperson continued.
GGT is based in New York and offers over-the-counter market-making services in digital assets. According to the website, it’s licensed with the New York Department of Financial Services, the Financial Industry Regulatory Authority, and the US Securities and Exchange Commission.
However, both spot and derivatives trading through GGC International Limited will still be “operational.”
GGC is a British Islands company “wholly owned by Genesis Bermuda Holdco Limited,” according to the Genesis Trading site.
Genesis Trading released a quarterly report for the second quarter of this year, noting that “spot market liquidity” had been “suffering” and that, with “spot order book depth chronically flagging, it has become increasingly apparent that a significant portion of the future growth of crypto volumes will be in derivatives.”
Though it also noted that “the buy-side continues to trade opportunistically in the spot and derivatives market, specifically with a tilt toward exchange-cleared venues and a selective approach to OTC activity with reliable and trusted partners.”
Another Genesis-linked company, Genesis Global Holdco, filed for bankruptcy at the start of the year, though GGT was able to avoid the bankruptcy. All companies are indirectly linked back to DCG.
DCG, a venture capital firm, has encountered its fair share of hurdles this year. It missed a $630 million debt payment to Gemini back in May and now faces a lawsuit from Gemini.
Gemini alleged both DCG and Silbert “engaged in a fraudulent scheme to induce a variety of depositors, including Gemini users,” in order to “lend huge amounts of cryptocurrency and US Dollars to DCG’s subsidiary Genesis Global Capital.”
Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.
Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.
Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.
Source: https://blockworks.co/news/genesis-global-trading-shutter-september