Genesis Terminates Crypto Spot and Derivatives Trading Services – What’s Going On?

Author
Author
Sujha Sundararajan
About Author

Sujha has been recognised as 🟣 Women In Crypto 2024 🟣 by BeInCrypto for her leadership in crypto journalism.

Last updated: 
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Source: Getty Images

Digital Currency Group’s Genesis that went bankrupt in January this year, continues to get hit by the bear crypto market. The digital assets lender is winding down its cryptocurrency spot and derivative trading business completely.

Genesis has not explicitly stated the reasons behind the decision, however, a company spokesperson confirmed in an email statement that Genesis will cease offering derivatives trading immediately, while spot trading services will come to a halt on September 21.

“Genesis has decided to stop offering digital asset spot and derivatives trading through GGC International, Ltd. (GGCI),” a September 14 memo, read.

GCCI is a British Virgin Islands company, which is fully owned by Genesis Bermuda Holdco Ltd.

“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.”

Earlier this month, US-based Genesis Global Trading, affiliated with the Digital Currency Group and wasn’t affected by the parent company’s bankruptcy in January, announced shutting down its cryptocurrency spot trading service on Sept. 18.

The company said at the time that it is in talks with relevant regulatory bodies, including the New York Department of Financial Services and the US Securities and Exchange Commission (SEC).

Effects of Bankruptcy

At one point, Genesis was considered the largest derivative service provider, before the firm entrapped into a controversy with the Winklevoss brothers’ crypto exchange Gemini, which loaned $900 million of customer funds to Genesis.

Soon, these funds were stuck, preventing Gemini Earn customers from withdrawing assets, affecting over 340K customers. Cameron Winklevoss publicly accused Genesis CEO Barry Silbert of using ‘stall tactics’ to delay the company’s official bankruptcy.

To make matters worse for Genesis, the US SEC charged Genesis and Gemini, on January 12, 2023, over offering unregistered securities through Gemini’s Earn product.

A week later, Genesis filed for Chapter 11 bankruptcy. However, the spot and derivatives trading as well as custody businesses were not part of the bankruptcy filing and continued to operate. The crypto market turmoil resulted in the closing of the trading services as well.

Logo

Why Trust Cryptonews

2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors
editors
+ 66 More

Best Crypto ICOs

Discover trending tokens still in presale — early-stage picks with potential

Explore Our Tools

Smart tools made for everyday crypto users

Market Overview

  • 7d
  • 1m
  • 1y
Market Cap
$3,360,379,079,897
-5.19
Trending Crypto

More Articles

Blockchain News
Russian Authorities Discover 30,000sqm Illegal Crypto Mining Farm in Industrial Plant
Tim Alper
Tim Alper
2025-06-17 23:30:00
Press Releases
Leading AI Claude Predicts the Price of XRP, Cardano and Solana by the End of 2025
2025-06-17 23:22:54
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors