- Genesis had halted all crypto operations following a disastrous 12 months
- The company was badly hit by the crypto contagion outbreak
- Its US-based trading arm closed earlier this month
Genesis, formerly a major cryptocurrency derivatives trading player, has announced that it will cease all cryptocurrency trading services across its various business entities. This decision follows the suspension of both spot and derivatives transactions through its American arm, Genesis Global Trading (GGT), earlier this month and the collapse into bankruptcy in January of its lending division, Genesis Global Capital.
Genesis Was Big Victim of Crypto Crash
Genesis was one of the major players in the crypto world, but the crypto winter and the collapse of certain large projects, such as Three Arrows Capital and FTX, hit the company hard. Genesis Global Capital took many people by surprise when it halted withdrawals in November last year, not least because it told its clients it hadn’t been affected by the spectacular implosions in the crypto space, but this didn’t affect Genesis’ trading vehicles at the time.
This changed when, on September 5, Genesis announced that GGT would be shuttered “voluntarily and for business reasons”. Its non-US trading operations were said to have not been affected at the time, but this changed Thursday when the company announced that GGC, too, would be wound down, again for “voluntarily and for business reasons”.
Stuck in the Middle With You
Genesis’ trading wings were effectively all that was left of the once great empire which collapsed into bankruptcy owing creditors around $3 billion. The company has since been in the middle of a pitched battle between its parent company Digital Currency Group and crypto platform Genesis due to hundreds of millions of dollars of Gemini customer funds trapped in Genesis Global Capital when it collapsed.