4 October 2023

Digital Technology Guru

Digital Technology Guru Reviews

Genesis Ceases Trading Services Amid Financial Woes and Regulatory Scrutiny

2 min read
Genesis Ceases Trading Services Amid Financial Woes and Regulatory Scrutiny

Genesis Global Holdco, the parent company of Genesis Global Capital LLC, has announced the cessation of trading services across all its business units, including GGC International. This decision, made voluntarily and for business reasons, comes after the company filed for Chapter 11 bankruptcy in January but kept its trading arm separate from the proceedings.

Genesis has been facing financial difficulties and regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC). The company previously suspended withdrawals in November due to the fallout from the FTX collapse. Additionally, Genesis became involved in a public feud between its parent company, Digital Currency Group (DCG), and the Winklevoss twins of Gemini exchange over failed loan negotiations.

In January, the situation escalated when the U.S. SEC charged Genesis Global Capital and Gemini Trust Company with the offer and sale of unregistered securities. Genesis reportedly owed its creditors over $3 billion, along with significant amounts owed to Gemini customers and the Dutch exchange Bitvavo.

In August, a tentative deal between Genesis and DCG was reached, but it faced opposition from a group of Genesis creditors who deemed it insufficient. The latest announcement of a complete halt in trading Genesis is another setback in the company’s ongoing troubles.

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– “Genesis Suspends Trading, Shuts Down GGC International” – CoinGeek