Digital Currency Group announced the closure of its subsidiary TradeBlock

Article reading time:
2 minutes.

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

TradeBlock provides institutionalinvestors trading and brokerage services. The company is headed by Breanne Madigan, who previously worked for 15 years at Goldman Sachs and served as Vice President of International Institutional Market Development at Ripple. In 2020, TradeBlock was acquired by cryptocurrency publication CoinDesk, which is also managed by the DCG holding.

In a conversation with Bloomberg, a representativeDCG said that the decision to liquidate TradeBlock was made in connection with 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 original terms of the agreements. In May, DCG missed paying off a $630 million debt to Genesis Global owed to cryptocurrency exchange Gemini.

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