The decision by Genesis Global Trading (GGT) to wind down its business was reportedly voluntary and is currently working with regulators to ensure an orderly closure of services.
Genesis Global Trading (GGT), a subsidiary of Barry Silbert’s Digital Currency Group that owns Grayscale Investments, has written a letter to its clients that it will be shutting down its crypto spot trading services by Monday, September 18, 2023. However, the company noted that the spot and derivatives trading services through GGC International Limited will remain operational. As a result, Genesis Global Trading told its clients that all trades must be settled by September 21, and all the remaining open accounts will be closed by September 30.
Despite the bankruptcy issues facing its parent company, Genesis Global Trading highlighted its decision to wind down its operations was on a voluntary basis. Consequently, Genesis Global Trading highlighted that it is working closely with regulators to ensure an orderly closure of business.
Events Leading to the Closure of Genesis Crypto Trading Desk for US Market
Genesis Global Trading has been in operation since 2013, meaning the company has gone through several bull and bear markets successfully. However, the troubles facing DCG founder and CEO Barry Silbert have undeniably affected the subsidiary companies significantly. With the ongoing bankruptcy proceedings for Genesis Global, following heavy losses incurred from the FTX implosion late last year, Silbert had signaled the sale of some of the subsidiaries.
Indeed, the DCG-affiliated companies led by Coindesk have undertaken several layoffs, in a bid to maximize revenue collection to repay outstanding loans. Notably, Genesis Global reduced its global headcount by about 30 percent to help navigate through the challenges with much ease. Furthermore, DCG is said to owe Gemini Earn users nearly $1 billion, which the company had offered to repay in ten years but was declined by the creditors.
Meanwhile, DCG has had some wins along the way, led by the recent monumental ruling of the Grayscale Investments vs SEC on its bid to convert the GBTC to a spot Bitcoin ETF. Notably, the ruling that favored Grayscale Investments suddenly revived the hopes for a spot Bitcoin ETF in the United States by the next six months. Moreover, Grayscale Investments has written a letter to the SEC to immediately approve its spot Bitcoin ETF due to a lack of merits for its denial.
“After the Commission has had the opportunity to fully analyze the court’s opinion in light of the record, including the reasons for rejection set forth … we believe the Commission should conclude that there are no grounds for treating the Trust differently from ETPs that invest in bitcoin futures contracts,” Grayscale’s legal team wrote in a letter to the SEC on Tuesday.
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