Genesis, the crypto lending firm that went bankrupt in early 2023, has emailed to users that it will stop offering all trading services including spot and derivatives trading operations from September 21, 2023.
“Genesis has decided to stop offering digital asset spot and derivatives trading through GGC International, Ltd. (GGCI). With this termination of services from GGCI, Genesis no longer offers trading services through any of its business entities”, Genesis spokesperson said.
The spokesperson added that this decision was made “voluntarily and for business reasons”, not due to regulatory intervention.
Previously, on September 5, Genesis Global Trading said it would close its over-the-counter trading platform for US customers on September 18, 2023. The latest announcement states that this service will be closed internationally from September 21, 2023.
Citing emails sent to customers, Genesis is said to still support derivatives positions until the expiration date as well as support transactions used to manage or close any open positions.
Genesis is one of the firms heavily affected by the collapse of FTX in November 2022. The platform had to halt withdrawals a few days later and officially filed for bankruptcy in January 2023, owing over $3.5 billion to its top 50 creditors.
Genesis has filed a lawsuit against its parent company, Digital Currency Group (DCG), seeking to recoup over $600 million unpaid DCG loans. At the end of August, DCG reached a preliminary agreement with Genesis creditors to settle the claims by reimbursing 70-90% in USD equivalent to unsecured creditors.
Besides Genesis, DCG had to close two subsidiaries HQ Digital and TradeBlock in 2023 while Luno wallet also stopped offering some services.