Genesis to Shutter Crypto Trading Desk for U.S. Market

The subsidiary had escaped parent company Genesis Global's lending-induced bankruptcy.

AccessTimeIconSep 5, 2023 at 4:27 p.m. UTC
Updated Sep 7, 2023 at 10:23 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Genesis’ U.S.-focused spot crypto trading business will shut down later this month, a move that may affect Genesis' restructuring process, an email sent to clients Tuesday shows.

Genesis Global Trading (GGT) will close its over-the-counter trading platform on Sept. 18. All trades must be settled by Sept. 21 and all remaining open accounts will be closed end of day on the 30th. “The decision was made voluntarily and for business reasons,” the email said.

Sunsetting GGT's U.S. spot-trading operations is "likely" to affect Genesis' restructuring by potentially kneecapping the company's ability to pay back its creditors, Andrew Rossow, an attorney and CEO of AR Media, told CoinDesk.

"Between the shutting down of this part of [its subsidiary's] business and its pending lawsuit against DCG...the biggest question is how [Genesis can] prioritize which creditors to pay back and how quickly it can be done," Rossow said.

GGT was one of a handful of Genesis-linked companies that escaped the conglomerate’s crypto lending-induced bankruptcy earlier this year. Another trading-focused wing, GGC International Limited, will continue to run its spot and derivative trading services, the email said.

Genesis is owned by DCG, as is CoinDesk.

UPDATE (Sept. 5, 2023, 16:57 UTC): Adds U.S. focus.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Danny Nelson

Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about