Genesis Global Trading Shuts Down US Crypto Trading Desk amid Disputes

Tuesday, 05/09/2023 | 20:51 GMT by Jared Kirui
  • The platform will close the crypto trading desk by September 30, 2023.
  • This move follows a legal dispute with FTX and a previous bankruptcy scare.
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Genesis Global Trading, a subsidiary of Genesis Global, is set to close its US-focused spot crypto trading operations by the end of this month. This decision, communicated to clients via email, comes against the backdrop of Genesis Global's recent tussle with FTX.

The email seen by Coindesk stated that GGT will cease its over-the-counter trading platform 's operations on September 18, 2023. Clients have been notified that all trades must be settled by September 21, and any remaining open accounts will be closed at the end of the month. The official statement attributed this decision to voluntary reasons related to business strategy.

GGC International Limited Takes Over

GGC International Limited, another trading-focused entity affiliated with Genesis, will reportedly continue to operate GGT's spot and derivatives trading services. GGT was one of Genesis Global's subsidiaries that escaped the conglomerate's bankruptcy .

Genesis Global's recent troubles involved a dispute with the now-bankrupt cryptocurrency exchange, FTX. According to a report by Finance Magnates, the latter claims that Genesis owed it a staggering USD $2 billion. However, an agreement 'in principle' was recently reached between the duo to resolve the legal matter.

The legal challenges do not stop there. Genesis Global and its Founder, Barry Silbert, are currently embroiled in a lawsuit with Gemini. The cryptocurrency exchange alleges that Genesis and Silbert were involved in fraudulent activities related to a digital asset lending platform that both companies operated. The program, which offered up to 8% interest to investors, suspended customer withdrawals after Genesis became insolvent.

FTX and Genesis

About two weeks ago, Finance Magnates reported that FTX had agreed to settle its claims dispute with Genesis by accepting a payment of USD $175 million to Alameda Research, its affiliated crypto hedge fund. In May, FTX sought a court order to recover approximately USD $3.6 billion in alleged transfers made to Genesis.

Previously both Gemini and Genesis were sued by the Securities and Exchange Commission (SEC) in January, with accusations of offering unregistered securities to the public through their crypto lending product. Furthermore, in late 2022, a group of investors initiated a class-action lawsuit against Gemini concerning the Gemini Earn Program.

Genesis Global Trading, a subsidiary of Genesis Global, is set to close its US-focused spot crypto trading operations by the end of this month. This decision, communicated to clients via email, comes against the backdrop of Genesis Global's recent tussle with FTX.

The email seen by Coindesk stated that GGT will cease its over-the-counter trading platform 's operations on September 18, 2023. Clients have been notified that all trades must be settled by September 21, and any remaining open accounts will be closed at the end of the month. The official statement attributed this decision to voluntary reasons related to business strategy.

GGC International Limited Takes Over

GGC International Limited, another trading-focused entity affiliated with Genesis, will reportedly continue to operate GGT's spot and derivatives trading services. GGT was one of Genesis Global's subsidiaries that escaped the conglomerate's bankruptcy .

Genesis Global's recent troubles involved a dispute with the now-bankrupt cryptocurrency exchange, FTX. According to a report by Finance Magnates, the latter claims that Genesis owed it a staggering USD $2 billion. However, an agreement 'in principle' was recently reached between the duo to resolve the legal matter.

The legal challenges do not stop there. Genesis Global and its Founder, Barry Silbert, are currently embroiled in a lawsuit with Gemini. The cryptocurrency exchange alleges that Genesis and Silbert were involved in fraudulent activities related to a digital asset lending platform that both companies operated. The program, which offered up to 8% interest to investors, suspended customer withdrawals after Genesis became insolvent.

FTX and Genesis

About two weeks ago, Finance Magnates reported that FTX had agreed to settle its claims dispute with Genesis by accepting a payment of USD $175 million to Alameda Research, its affiliated crypto hedge fund. In May, FTX sought a court order to recover approximately USD $3.6 billion in alleged transfers made to Genesis.

Previously both Gemini and Genesis were sued by the Securities and Exchange Commission (SEC) in January, with accusations of offering unregistered securities to the public through their crypto lending product. Furthermore, in late 2022, a group of investors initiated a class-action lawsuit against Gemini concerning the Gemini Earn Program.

About the Author: Jared Kirui
Jared Kirui
  • 988 Articles
  • 11 Followers
About the Author: Jared Kirui
Jared is an experienced financial journalist passionate about all things forex and CFDs.
  • 988 Articles
  • 11 Followers

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