Genesis has announced that it will no longer offer crypto trading services. These include digital asset spot and derivative services. The development comes after it reached a credit agreement with DGC, or Digital Currency Group. The agreement allows 70% to 90% credit recovery. Genesis had to take the call to halt its crypto services after suffering massively from last year’s collapse of FTX and Three Arrows Capital.
Last year’s crypto winter was horrible for the entire crypto industry. Its effects can even be seen in recent times, with BTC trading at $26,644.40, down from its all-time high of $65k.
The company has interacted with the media to clarify that the decision is voluntary and has been taken for business-related reasons. Genesis no longer offers trading services, Genesis added in the media statement after saying that the services have been terminated from GGCI.
DCG had earlier announced that it was narrowing down its efforts to reach an agreement with Genesis in relation to Chapter 11 Bankruptcy. The idea was to resolve the claims as soon as possible.
Meanwhile, interest in blockchain technology is growing across the world, with governments and financial institutions looking to explore the technology. The objective is to facilitate cross-border transactions securely and at a lower cost. Ripple has claimed that the technology has the capability of saving at least $10 billion in cross-border transactions. However, that can only happen by the end of 2030. Also, financial institutions and customers are estimated to experience faster execution of a transaction.
Circling back to Genesis and DCG, Genesis claimed that DCG owed it $500 million along with 4,550 BTC. Court documents have revealed that the actual amount may be somewhere around $600 million.
It dates back to September 7, 2023, when Genesis alleges that DCG borrowed $500 million across four loans from Genesis. This happened in 2022 and was in addition to borrowing 18,697.7 BTC in 2019.
Genesis filed for bankruptcy in January this year, claiming that DCG and DCGI were wrongfully in possession of property that actually belonged to the bankruptcy estate of Genesis Global Capital. Loans have matured and are payable as of May 2023; however, DCG wants to convert them to open loans. Genesis never confirmed agreeing to this and continues to seek repayment.
On September 15, 2023, Genesis said that it is now shutting down its crypto trading services after reaching a conclusion with DCG. An ambiguous reason has been given for ceasing the services, stating that the voluntary reason has been taken for business reasons. The community and media platforms await a more specific reason. Moreover, customers continue to wait for instructions about what they should do if they have deposited their funds, are in the middle of executing a trade, or have executed the trade.