GGT Shuts Down US Crypto Trading Desk

GGT Shuts Down US Crypto Trading Desk

Time Stamp: September 5, 2023 4:51 PM
GGT Shuts Down US Crypto Trading Desk PlatoBlockchain Data Intelligence. Vertical Search. Ai.

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 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, 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 in alleged transfers made to Genesis.

Besides that, both
Gemini and Genesis were previously 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 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 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, 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 in alleged transfers made to Genesis.

Besides that, both
Gemini and Genesis were previously 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 Gemini Earn Program.

Time Stamp:

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