- According to DCG’s announcement, TradeBlock will shut down its institutional trading platform on May 31.
- Parent company Digital Currency Group (DCG) made the decision amid a hostile climate for cryptocurrency regulation in the U.S., Bloomberg reported.
- The company also ran into cash problems, failing to repay a $630 debt to cryptocurrency exchange Gemini.
- DCG subsidiary Genesis declared bankruptcy after freezing withdrawals and exposure to a collapsed crypto entity.
Digital Currency Group (DCG) is shutting down its institutional trading platform TradeBlocks amid financial hurdles and tensions in the U.S. cryptocurrency regulatory environment.
Due to the general economic conditions and ongoing crypto winter, as well as the challenging regulatory environment for digital assets in the US, we have decided to discontinue the institutional trading platform aspect of our business.
– DCG Spokesperson Bloomberg.
TradeBlock clients will have until May 31 to access the platform, when institutional trading services will officially shut down. It is unclear how customer withdrawals, balances and assets will be handled.
DCG’s Floating Company Portfolio
TradeBlock was acquired by crypto news outlet CoinDesk (another Digital Curren Group company) in January 2021 for an undisclosed fee. CoinDesk rebranded the startup’s institutional-grade market index infrastructure and rebranded the product as CoinDesk Indices. Other TradeBlock products will operate as separate businesses.
Barry Silber’s Digital Currency Group has been through uncertain times since the acquisition. CoinDesk reached out to investors about a potential acquisition in January as the parent company struggled financially. The group closed the headquarters of its wealth management division that same month.
Last year, the group laid off about 500 employees and posted a $1 billion loss as a result of the cryptocurrency crash that followed the collapse of FTX and Three Arrows Capital, among others.
Most recently, DCG missed a $630 million repayment to cryptocurrency exchange Gemini. The exchange stated that DCG owes its Earn users substantial funds.Gemini can explore tolerance option
The company, founded by Winklevi, said this could allow Digital Currency Group and its bankrupt Genesis unit to resume payments at a later date, but it depends on how the group strikes an agreement.