Digital Currency Group (DCG) announced the closure of its brokerage subsidiary, TradeBlock, which will cease operations on May 31 due to the uncertain regulatory environment.
TradeBlock provides institutional investors with 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 market development at Ripple.
In 2020, TradeBlock was acquired by the cryptocurrency publication CoinDesk, which is also managed by DCG Holding.
Speaking to Bloomberg a DCG spokesperson told Bloomberg that the decision to liquidate TradeBlock was made due to the economic crisis and the protracted cryptozyma, as well as the difficult regulatory environment for cryptocurrencies in the United States.
Discontinuing the platform is considered the most viable course of action, the holding company’s management has decided.
The news comes amid ongoing negotiations between DCG and creditors of its subsidiary Genesis Capital, which filed for bankruptcy because of the collapse of crypto exchange FTX.
The parties intend to discuss a settlement plan after the violation of the original terms of agreements.
In May, DCG missed a $630 million debt payment to Genesis Global owed to cryptocurrency exchange Gemini.
DCG’s total loss for 2022 was $1.1 billion, one of the main reasons being the restructuring of the Genesis lending platform.
In February, the media reported that DCG Holding began selling off Grayscale stock to pay off its debt.