2023-05-27 09:33:34
Digital Currency Group (DCG), one of the largest investment companies in the crypto industry, has announced that it will shut down its subsidiary TradeBlock, which provided trading and brokerage services to institutional investors.
After TradeBlock was acquired by another DCG subsidiary, CoinDesk, just over two years ago, the platform will be shut down for good on May 31st.
The Digital Currency Group plans to close down its prime brokerage subsidiary TradeBlock on May 31.
— Laura Shin (@laurashin) May 26, 2023
According to the company, several factors contributed to the termination of TradeBlock. These include the increase in the number of regulations aimed at disabling digital devices in the United States, the deterioration of the economic situation, and the prolonged crypto winter. A Digital Currency Group spokesperson told Bloomberg that these circumstances led to the termination of the institutional trading platform being the most logical course of action.
Negotiations between DCG and Genesis are ongoing
In parallel with the termination of TradeBlock, DCG continues negotiations with Genesis, a subsidiary of the bankrupt lender. DCG and Genesis are in ongoing negotiations to find a final solution following some creditors backed away from the original terms of the agreement.
A Gemini crypto exchange and also one of the main creditors of Genesis highlighted that the negotiations are currently mainly regarding DCG’s contribution to the bankruptcy estate. Gemini also confirmed that DCG had not paid its $630 million debt due the previous week.
By the way, Digital Currency Group announced on Twitter on May 9 that it is in talks with investors regarding growth capital and the payment of debt related to Genesis.
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