Genesis Global Trading (GGT), a prominent player in the cryptocurrency market, has announced its decision to cease its cryptocurrency spot trading service on September 18, as reported by various press outlets. GGT, affiliated with the Digital Currency Group (DCG), made this surprising move despite its parent company, Genesis Global Capital, having declared bankruptcy back in January.
GGT, which commenced its cryptocurrency trading operations in 2013, has been a registered entity under the oversight of the New York State Department of Financial Services. Despite the impending shutdown of its spot trading service, the DCG-associated GGC International is set to continue providing both spot and derivatives trading services, according to information from Bloomberg.
Genesis Global Capital made headlines in January when it filed for Chapter 11 bankruptcy, just a week after the United States Securities and Exchange Commission (SEC) charged the company with offering unregistered securities through its Earn program. This unfortunate series of events began with the company’s layoffs of 30% of its staff a week before the bankruptcy filing. In November of the previous year, Genesis Global Capital had suspended withdrawals, citing the collapse of Three Arrows Capital and losses related to the collapse of FTX as contributing factors.
The suspension of withdrawals by Genesis had broader implications, triggering a legal dispute with the Gemini cryptocurrency exchange. Gemini had approximately $900 million entangled in the Genesis Earn program and was simultaneously charged by the SEC for its involvement in unregistered securities offerings.
DCG, led by Barry Silbert, also boasts ownership of Grayscale Investments. Recently, Grayscale Investments achieved a significant legal victory on August 29 when the SEC’s prior refusal to consider its application to establish a Bitcoin spot exchange-traded fund (ETF) was overturned.
The cryptocurrency market continues to face regulatory scrutiny and challenges, and the decisions of key players like GGT and Genesis Global Capital underscore the complexities and uncertainties in this rapidly evolving landscape. As the industry adapts to these changes, investors and stakeholders will closely monitor the implications for the broader crypto ecosystem.
