Digital Currency Group announced the closure of its subsidiary TradeBlock

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Digital Currency Group Holding(DCG) announced the closure of its brokerage subsidiary TradeBlock, which will cease operations on May 31 due to the uncertain regulatory environment.

TradeBlock provides institutionalinvestors trading and brokerage services. The company is led by Breanne Madigan, who previously worked for 15 years at Goldman Sachs and served as vice president of international institutional markets development at Ripple. In 2020, TradeBlock was acquired by the cryptocurrency publication CoinDesk, which is also managed by the DCG holding.

In conversation with the publicationBloomberg DCG representative said that the decision to liquidate TradeBlock was made due to the economic crisis and the prolonged crypto winter, as well as due to the difficult regulatory environment for cryptocurrencies in the United States. Termination of the platform is considered the most viable course of action, the holding’s management decided.

This news comes amid ongoingnegotiations between DCG and creditors of its subsidiary Genesis Capital, which filed for bankruptcy due to the collapse of the FTX crypto exchange. The parties intend to discuss a settlement plan after the violation of the initial terms of the agreement. In May, DCG missed paying a $630 million debt owed to Genesis Global by cryptocurrency exchange Gemini.

DCG's total losses for 2022 amounted to $1.1billion, one of the main reasons is the restructuring of the Genesis lending platform. In February, the media reported that in order to pay off debt obligations, the DCG holding began to sell off Grayscale shares.