| The U.S.-based crypto conglomerate Digital Currency Group (DCG), also the parent company of the bankrupt crypto lender Genesis, has announced that it would halt the operations of its institutional trading platform, TradeBlock. The shutdown will be effective as of May 31. - The unit offered trade execution, pricing, and prime brokerage services to its corporate customers.
- The
firm cited the state of the broader economy, the prolonged crypto
winter, and the challenging regulatory environment for digital assets in
the U.S. while explaining the decision.
- TradeBlock was initially acquired by DCG's crypto-related media and events company, CoinDesk Inc., in 2020.
- The division was led by Breanne Madigan, who also previously spent years at Goldman Sachs and Ripple.
- DCG's crypto lending business, Genesis Global, filed for bankruptcy
in January this year after freezing withdrawals in November 2022,
mainly due to its exposure to the collapse of the major crypto exchange
FTX.
- In January, DCG also had to shut down its wealth management division.
- Earlier this year, the firm reported an over $1.1B financial loss for 2022 due to the crypto market downturn.
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