Amid the ongoing crypto market downturn, digital asset-focused venture capital firm Digital Currency Group (DCG) has announced that it is shutting down its subsidiary TradeBlock that provided its trading services to institutional investors.
Trading platform Bloomberg to shut down on May 31 informed of,
“Due to the state of the broader economy and the prolonged crypto winter, as well as the challenging regulatory environment for digital assets in the US, we made the decision to close the institutional trading platform,” a DCG spokesperson said.
CoinDesk Inc., also a DCG offshoot, acquired TradeBlock in 2020. The Crypto Media and Events offshoot absorbed the indexing business it had initially purchased. The remaining operations were later spun out under the TradeBlock brand. Financial details of the deal were not disclosed.
Meanwhile, many crypto industry observers are puzzled by the venture capital firm’s move as DCG previously indicated that it was planning to focus on developing its core business.
TradeBlock states on its website that its “API-centric end-to-end platform enables institutions to streamline their crypto asset trading workflows with purpose-built pre-trade, trade execution, post-trade and reporting solutions.” Is.”
financial crisis continues
Meanwhile, DCG is attempting to sell its bankrupt lending subsidiary Genesis, which would allow the business to pay back at least a portion of the roughly $3.4 billion it owes its creditors.
in may 9 statementThe DCG said it is “engaging with various stakeholders in the Genesis Capital restructuring process in accordance with the 30-day mediation period entered into by all parties on May 1.”
“On a parallel path and to provide further financial flexibility, DCG is in discussions with capital providers for growth capital and to refinance its outstanding intercompany obligations with Origin,” the business said.
In an earlier statement issued on January 20, 2023, DCG said it owed “approximately $526 million due in May 2023 and $1.1 billion under the promissory note due in June 2032. DCG will fully service its obligations to Genesis Capital.” intends to accomplish during a reorganization.
DCG failed to repay a $630 million loan owed to Genesis’ bankruptcy assets earlier this month, triggering an announcement by Cameron Winklevoss, CEO of crypto exchange Gemini, which is one of the borrowers, that he would file a lawsuit against DCG and may sue its CEO, Barry Silbert. of its $900 million loan.
