The effects of the bear market continue to bring losses to many, be it investors or companies. The newest victim on the block is Digital Currency Group’s Genesis. While the lending platform was already bankrupt as of January this year, the firm is now shuttering all crypto services.
Genesis comes to an end
Genesis spokesperson confirmed on September 14 that the company will be ceasing the offering of all crypto spot and derivative trading services within a week. While the derivatives trading has been stopped immediately, the spot trading services will come to a halt on September 21.
The spokesperson noted that the decision was made voluntarily by the company and cited “business reasons” as the cause behind it. The crypto market has been pretty bleak over the past couple of months and has resulted in losses across the board. This got to many traders and investors, but Genesis is emerging as the first major platform to be affected.
Genesis, at one point, was among the largest lending and derivative service providers before it became entangled in controversy with Gemini over their joint Earn venture in November 2022. This was followed by enforcement action by the Securities and Exchange Commission (SEC), which filed a lawsuit against the firms for violating securities laws.
Soon after, in January this year, the lending firm announced that it was filing for bankruptcy. The spot and derivative trading front of Genesis was untouched during the bankruptcy process; however, the terrible market conditions resulted in the shuttering of the trading services as well.
This comes less than a week after Genesis announced that it would be winding down its spot trading services in the United States. At that time, GGC International, Genesis trading service provider outside the US, did not declare any such intentions until the confirmation on September 14.
