April 19, 2024
GGT voluntarily discontinues cryptocurrency spot trading
Latest Cryptocurrency News

GGT’s Voluntary Decision to Cease Cryptocurrency Spot Trading Amid Regulatory Coordination

Genesis Global Trading (GGT) is set to cease its cryptocurrency spot trading service on September 18, as reported by press sources. Despite its affiliation with the Digital Currency Group (DCG), GGT remained unaffected when its parent company’s crypto lending arm, Genesis Global Capital, filed for bankruptcy in January.

The decision to shutter GGT’s trading service is described as voluntary, with a company spokesperson quoted by Bloomberg stating:

“This decision was made voluntarily and for business reasons. We are working closely with regulatory authorities to coordinate an orderly discontinuation of services.”

GGT commenced its trading operations back in 2013, as indicated on its website. It is duly registered with the New York State Department of Financial Services. Meanwhile, GGC International, also affiliated with DCG, will continue to provide spot and derivatives trading services, according to Bloomberg.

Genesis Global Capital’s Chapter 11 bankruptcy filing on January 19 came shortly after the United States Securities and Exchange Commission (SEC) accused it of offering unregistered securities through its Earn program. This legal action followed a series of events, including a significant workforce reduction of 30% a week earlier and a withdrawal suspension in November. The collapse of Three Arrows Capital was cited as the reason for the suspension, and Genesis reportedly incurred losses in the collapse of FTX as well. The suspension of withdrawals led to a legal dispute with the Gemini cryptocurrency exchange, which had $900 million involved in the Genesis Earn program. Notably, the SEC also charged Gemini with unregistered securities offerings around the same time as Genesis.

DCG, led by Barry Silbert, also holds ownership of Grayscale Investments, which recently won a legal victory on August 29 when the SEC’s rejection of its application to establish a Bitcoin spot exchange-traded fund was overturned.

Image by freepik

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