The digital-asset conglomerate Digital Currency Group is closing down its institutional trading arm TradeBlock, citing harsh crypto market conditions. TradeBlock focused on providing trade execution, pricing, and prime brokerage services to institutional investors.
DCG will shut down its prime brokerage subsidiary Tradeblock by the end of the month, Bloomberg reported.
Prolonged crypto winter season
Digital Currency Group cited the broader economy and prolonged crypto winter, along with the uncertain regulatory environment for the digital assets in the US for shutting down its institutional trading platform side of the business. Earlier, DCG shut down its wealth-management division headquarters as it deals with Genesis’s bankruptcy.
Digital Currency Group has been negotiating with creditors of its bankruptcy lending business, Genesis, before it took the decision to close down its TradeBlock subsidiary.
DCG also revealed losses exceeding $1 billion last year from the domino effect of FTX and crypto collapse last year. In January, DCG’s crypto lending division Genesis Global filed for Chapter 11 bankruptcy protection.
DCG misses $630 million loan payment to Gemini
Gemini had landed $900 million to now defunct Genesis, a subsidiary of DCG. As reported earlier, the Winklevoss twins-owned crypto company and other creditors are considering whether to provide a forbearance to DCG as a means to avoid a default after it missed $630 million loan payment. Gemini had earlier warned that DCG risks default if it misses this payment.
Forbearance would enable DCG to temporarily reduce or halt payments, with the expectation of resuming them later. Warning of providing DCG with forbearance, Gemini said, “consideration will be based in part on whether the parties believe DCG will engage in good faith negotiations on a consensual deal
די דערלאנגט אינהאַלט קען אַרייַננעמען די פערזענלעכע מיינונג פון די מחבר און איז אונטערטעניק צו די מאַרק צושטאַנד. טאָן דיין מאַרק פאָרשונג איידער ינוועסטינג אין קריפּטאָקוררענסי. דער מחבר אָדער די ויסגאַבע איז ניט פאַראַנטוואָרטלעך פֿאַר דיין פערזענלעכע פינאַנציעל אָנווער.