The institutional trading division of cryptocurrency currency giant Digital Currency Group, TradeBlock, is shutting down due to challenging conditions in the cryptocurrency market. TradeBlock concentrated on giving institutional investors superior brokerage, pricing, and trade management services.
As per the news report, DCG will close its primary brokerage subsidiary Tradeblock before the last day of the month.
The institutional trading platform division of Digital Currency Group’s company has been shut down due to the general state of economic conditions, the lengthy crypto winter, and the US’s unclear legal framework for digital assets.
Before this, DCG closed its wealth administration business offices with Genesis’s insolvency.
Before deciding to shut down its TradeBlock subsidiary, DCG engaged in talks with the investors of its insolvent lending company, Genesis.
Additionally, DCG disclosed losses from the chain reaction of the FTX and crypto crash last year that totaled more than $1 billion. Genesis Global, a part of DCG that handles crypto financing, filed for bankruptcy protection under Chapter 11 in January.
Gemini had acquired $900 million from DCG subsidiary Genesis, which is now bankrupt. As previously stated, the crypto business owned by the Winklevoss twins and other stakeholders are debating whether to grant DCG an exemption in order to prevent a default after it missed a loan payment of $630 million.
Gemini has previously cautioned that if DCG fails this payment due, the company may experience bankruptcy.
In exchange for delay, DCG would be granted permission to temporarily lower or stop making payments with the intention of doing so in the future. Gemini warned that granting DCG forbearance would depend in part on whether the parties thought DCG would negotiate in good faith for a mutually agreeable solution.
