Genesis Global Trading (GGT) looks to close the doors of its US-based spot crypto trading platform on 18 September 2023. This information surfaced in an email to customers and followed in the wake of the company’s scuffle with FTX.
Genesis closes the door of its U.S. crypto trading desk
The communication stated that the Genesis Global subsidiary would discontinue all over-the-counter operations and notified customers that all trades must be settled by the said date. GGT also indicated it would close all open accounts come the end of the month.
In an official statement, GGT maintained voluntary business strategies and moves motivated this decision. Reportedly, GGC International Limited, another crypto trading platform associated with Genesis Global, will operate GGT’s spot and derivatives trading services in future.
Claims that the now-bankrupt Genesis Global owed FTX billions are among the headaches faced by this application development platform. The two companies reached an agreement in principle (API) to resolve this legal issue. Previous reports detail that, as part of the settlement, FTX accepted a Genesis Global payment of $175m to Alameda Research, an FTX affiliate hedge fund.
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Other obstacles include an ongoing Gemini lawsuit against Genesis Global and its founder, Barry Silbert. Gemini accuses them of fraudulent asset lending activities on a jointly operated platform. This platform offered up to 8% interest on investments but ceased customer withdrawals when Genesis Global went belly-up.
Notably, both Genesis Global and Gemini faced legal heat from the U.S. Securities and Exchange Commission. The regulator claimed they peddled unregistered securities through crypto lending products.
