Genesis Global Trading (GGT), a well-established name in cryptocurrency trading, has announced that its cryptocurrency spot trading service will be shutting down soon. The closing date, scheduled for September 18, 2023, is a voluntary decision of the company and indicates significant changes in the field of crypto trading. GGT, which is affiliated with the Digital Currency Group (DCG), stressed that its decision had nothing to do with DCG’s past financial difficulties.
Cryptocurrency platform shuts down
According to the latest media reports, GGT has confirmed its intention to discontinue cryptocurrency spot trading. The move, surprising to some, is described by GGT as a voluntary decision driven by commercial concerns. A spokesperson for the company said, “This decision was made voluntarily and for business reasons. “We are working closely with regulatory authorities to coordinate regular shutdowns of services.”
GGT has been a leading player in the world of cryptocurrency trading since its founding in 2013 and is registered with the New York State Department of Financial Services. Despite its affiliation with DCG, the closure of GGT’s spot trading service appears to be an independent decision and does not appear to be linked to DCG’s previous financial difficulties.
DCG and Genesis: What’s next?
It is important to note that the Genesis shutdown did not affect the broader DCG ecosystem. DCG subsidiary GGC International will continue to offer both spot and derivatives trading services, ensuring that crypto traders still have options within the DCG network. Genesis Global Capital, a crypto lender under the DCG umbrella, faced significant setbacks earlier this year. In January, it filed for Chapter 11 bankruptcy after a legal dispute with the United States Securities and Exchange Commission (SEC). The SEC had accused Genesis Global Capital of offering unregistered securities through the Earn program. This legal conflict has led to a number of challenges, including firing staff and suspending withdrawals.
Problems at Genesis Global Capital also had ripple effects, sparking a legal dispute between Gemini cryptocurrency exchange and the SEC. Gemini had substantial funds tied to the Genesis Earn program and was accused by the SEC of unregistered securities offerings. DCG, led by Barry Silbert, has a significant share in the cryptocurrency market. He also owns Grayscale Investments, a company focused on cryptocurrency investments. Notably, Grayscale recently scored a legal victory when the SEC reversed its decision and agreed to consider Grayscale’s application to create a Bitcoin spot exchange-traded fund (ETF).
