Genesis to halt all trading services by Sept. 21

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Gen­e­sis will soon close all of its ser­vices, accord­ing to a Sept. 14 report.

A Gen­e­sis spokesper­son was on record saying:

“Gen­e­sis has decid­ed to stop offer­ing dig­i­tal asset spot and deriv­a­tives trad­ing through GGC Inter­na­tion­al, Ltd. (GGCI)…With this ter­mi­na­tion of ser­vices from GGCI, Gen­e­sis no longer offers trad­ing ser­vices through any of its busi­ness entities.”

The spokesper­son said fur­ther that Gen­e­sis made this deci­sion “vol­un­tar­i­ly and for busi­ness rea­sons,” which appears to exclude reg­u­la­to­ry inter­ven­tion as a cause.

Pre­vi­ous­ly, on Sept. 5, Gen­e­sis said it would shut down its over-the-counter (OTC) trad­ing desk for U.S. clients. By con­trast, the lat­est announce­ment extends to the company’s inter­na­tion­al ser­vices, accord­ing to a Gen­e­sis spokesperson.

Still, oth­er report­ing quotes an email to cus­tomers sug­gest­ing that Gen­e­sis will hon­or open deriv­a­tives posi­tions until expiry. It also says that the com­pa­ny will sup­port trans­ac­tions used to man­age or close any open positions.

Gen­e­sis’ inter­na­tion­al ser­vices will be halt­ed on Sept. 21. Its U.S. desk will be halt­ed on Sept. 18; trades must be set­tled by Sept. 21, and accounts will be closed on Sept. 30.

Broader issues at DCG

Gen­e­sis’ cryp­to lend­ing ser­vice pre­vi­ous­ly shut down with­drawals in Novem­ber 2022; this extend­ed to the Earn fea­ture that it pro­vid­ed in part­ner­ship with Gemini.

Genesis’s lend­ing divi­sion entered bank­rupt­cy short­ly after that, although bank­rupt­cy sta­tus did not extend to all of the company’s operations.

The expand­ing shut­downs are part of wide­spread dif­fi­cul­ties at Gen­e­sis and its par­ent com­pa­ny, Dig­i­tal Cur­ren­cy Group (DCG). While Gen­e­sis owes more than $3.5 bil­lion to cred­i­tors, DCG has been sued by Gemini’s founders. The con­flict is also inter­nal: on Sept. 6, Gen­e­sis filed a law­suit claim­ing that DCG owes it more than $610 million.

DCG’s oth­er sub­sidiaries have been affect­ed as well. DCG closed two busi­ness­es, HQ Dig­i­tal and Trade­Block, in 2023. Its wal­let ser­vice, Luno, is reduc­ing U.K. ser­vices due to upcom­ing reg­u­la­tions; Luno also end­ed inter­est-bear­ing fea­tures in late 2022.

The post Gen­e­sis to halt all trad­ing ser­vices by Sept. 21 appeared first on Cryp­toSlate.

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