Genesis, a crypto lending firm and subsidiary of Digital Currency Group (DCG), has announced its decision to stop offering spot and futures trading for digital assets through its British Virgin Islands affiliate. This move comes as Genesis faces legal entanglements and a significant debt to its creditors.

According to a spokesperson for Genesis, the company has chosen to voluntarily discontinue trading services for digital assets across all of its subsidiaries due to business reasons. Genesis has been providing trading services through its international division, Genesis Global Capital (GGC), located in the British Virgin Islands.

The decision by Genesis follows a similar announcement by Genesis Global Trading (GGT), which is affiliated with DCG but not involved in the same bankruptcy proceedings as GGC, to cease cryptocurrency spot trading services.

Genesis has been embroiled in a series of legal and financial issues over the past year. In November 2022, GGC halted withdrawals and filed for bankruptcy in January 2023, citing “unprecedented market turmoil.” It was later revealed in January that the company may have engaged in marketing unregistered securities through Gemini’s Earn program, resulting in employee layoffs. Genesis lenders claim that the company owes them a total of $3.5 billion.

Summary

Genesis, a subsidiary of Digital Currency Group, has announced that it will no longer offer spot and futures trading for digital assets through its British Virgin Islands affiliate. This decision comes as the company faces legal and financial troubles, including a significant debt to its creditors. Genesis lenders claim that the company owes them $3.5 billion.

FAQ

What is Genesis?

Genesis is a cryptocurrency loan company and subsidiary of Digital Currency Group (DCG).

Why is Genesis ceasing crypto trading services?

The company has chosen to voluntarily discontinue its trading services for digital assets across all subsidiaries due to business reasons.

What legal and financial issues has Genesis faced?

In November 2022, Genesis Global Capital (GGC) filed for bankruptcy after halting withdrawals. The company may have also engaged in marketing unregistered securities, resulting in employee layoffs. Genesis lenders claim the company owes them $3.5 billion.

What is Digital Currency Group (DCG)?

DCG is the parent company of Genesis and other crypto-related businesses, including Grayscale Investments.