Genesis Global Trading (GGT) will close down all of its crypto trading services in the U.S. and internationally.
Earlier this week, the firm said it would sunset its over-the-counter trading platform on Sept. 18 in an email to clients, telling them that all trades must be settled by Sept. 21 and any remaining open accounts would be closed by the end of day on Sept. 30.
A spokesperson for the firm told CoinDesk on Thursday that the firm had decided to stop offering digital asset spot and derivatives trading as well.
“This decision was made voluntarily and for business reasons. With this termination of services from GGCI, Genesis no longer offers trading services through any of its business entities,” said the Genesis spokesperson.
Genesis’ crypto lending arm filed for Chapter 11 bankruptcy early this year after the firm halted withdrawals almost immediately after FTX’s collapse. At the time, market participants believed that there was no real cause for alarm because the firm’s parent company, major crypto conglomerate Digital Currency Group (DCG), would be able to cover the firm’s liabilities.
Signs of trouble emerged when DCG was unable to provide the much-needed cash infusion and was instead seen closing down other parts of its businesses, including its wealth management division and looking to divest a part of its $500 million venture portfolio.
Last month, Genesis finally reached an in-principle agreement with its unsecured creditors that would reportedly lead to recoveries of between 65%-95% of the value of claims.
However, several creditor groups, including crypto exchange Gemini, have opposed the plan, calling it “wholly insufficient” and asserting that the purported recoveries were completely unsubstantiated.
