The memo stated that this decision was made voluntarily and for business reasons. Genesis Global Trading, which is affiliated with the Digital Currency Group and unaffected by the parent company’s bankruptcy, previously announced the closure of its cryptocurrency spot trading service. Genesis was once considered the largest derivative service provider but faced controversy when customer funds were loaned to them by the Winklevoss brothers’ crypto exchange Gemini. These funds became stuck, affecting over 340,000 customers.
Genesis CEO Barry Silbert was accused by Cameron Winklevoss of using delay tactics to prolong the company’s official bankruptcy. In January, Genesis and Gemini were charged by the US Securities and Exchange Commission for offering unregistered securities through Gemini’s Earn product. Genesis filed for Chapter 11 bankruptcy a week later, but spot and derivatives trading, as well as custody services, continued to operate until now. The market turmoil has now led to the closing of these trading services as well.