It is understood that Genesis Global Trading will be closing down on its cryptocurrency spot trading service on the 18th of September. For those wondering, GGT has been affiliated with the Digital Currency Group, but it wasn’t really affected when the crypto lender of the parent company, Genesis Global Capital, ended up declaring bankruptcy in January.
The trading shutdown for GGT is definitely voluntary, according to a report from Bloomberg, where it was mentioned by a spokesperson that the decision had been made voluntarily and for a bunch of business reasons. The staff had been working closely with most of the regulatory authorities in order to coordinate an orderly discontinuation of services.
Genesis Global Trading Has Stopped Withdrawals
Genesis Global Trading started in 2013, according to an official announcement on the website. It is currently registered under the New York State Department of Financial Services. The DCG-affiliated GGC International will still continue to offer spot, as well as derivatives trading services, according to Bloomberg.
GGC had also previously filed for a Chapter 11 bankruptcy plan on the 19th of January, just a week after the United States Securities and Exchange Commission charged it with offering a bunch of unregistered securities through the Earn program. Just a week before that, it had also laid off around 30% of the staff, and in November, it ended up suspending all the withdrawals.
The suspension of the Genesis Global Trading withdrawals did set off quite a legal conflict with the cryptocurrency exchange of Gemini, which has had around $900 million tied up in the program of Genesis Earn. Gemini was then charged by the SEC with a whole bunch of unregistered securities offerings at the same time as Genesis.