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Genesis, previously one of the crypto trading giants, has decided to halt all its trading services.
Once one of the largest digital derivatives traders under the umbrella of the Digital Currency Group (DCG), Genesis’s decision encompasses both spot and derivatives products across all its global business entities. While the firm had earlier announced the closure of its US operations, the recent move indicates a complete shutdown. The decision, as stated by Genesis, is voluntary and rooted in business considerations.
A series of blows
The closure comes some time after the 2022 downfall of the crypto-focused hedge fund, Three Arrows Capital, which Genesis cites as a significant factor. The subsequent market upheaval further influenced their decision to cease operations.
Genesis Global Holdco, another affiliate of DCG, went into Chapter 11 bankruptcy earlier this year, and subsequently, the SEC charged Genesis, along with Gemini, over marketing unregistered securities for the Gemini Earn programme.
In August, DCG announced an agreement with Genesis to pay back a large part of the funds owed to creditors, but the plan was criticised for being unable to put even a sizeable dent in the $3.5 billion owed just to the top 50 creditors.
Bitcoin and Ether continue rally
Meanwhile, Bitcoin (BTC) seems to be unfazed by these developments, and has continued its rally, closing above $26,500. Despite the challenges of the so-called 'Septem’bear' curse, Bitcoin's performance remains strong.
On the other hand, Ethereum (ETH) recorded a modest 1.2% rise, positioning its spot price at $1,628 so far this morning. While Bitcoin continues to outshine Ethereum, the latter's performance is still noteworthy in the broader crypto landscape.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.