A Genesis spokesperson said the service would “voluntarily and for commercial reasons” discontinue digital asset trading services across all of its divisions. The move comes after Genesis Global Trading—a company affiliated with Digital Currency Group but not subject to the same bankruptcy proceedings as Genesis Global Capital—announced in January that it would cease trading cryptocurrencies spot due to similar circumstances.
At the time, GGC’s international division still offered spot trading and crypto derivatives trading. GGC stopped withdrawing funds in November 2022 due to market turmoil. The company’s January filings indicated it was looking to lay off up to 30% of its workforce before filing for bankruptcy protection. Then, in January 2023, the US Securities and Exchange Commission (SEC) accused Genesis and cryptocurrency exchange Gemini of offering unregistered securities through the Gemini Earn program.
Genesis blames cryptocurrency hedge fund Three Arrows Capital for its collapse and said it suffered losses due to the FTX crypto exchange fiasco. In August, DCG announced it had reached an agreement with Genesis’ creditors, setting out a recovery plan. However, the Gemini crypto exchange later challenged this deal due to a lack of transparency.
Source: Bits

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