From May 31 onward, TradeBlock will initiate the formal process of concluding its operations.
Digital Currency Group (DCG), a prominent venture capital conglomerate, has announced the closure of its prime brokerage subsidiary, TradeBlock. The decision to shut down TradeBlock stems from concerns about the overall economic conditions and the uncertain regulatory landscape surrounding cryptocurrencies in the United States. Bloomberg reported on May 25 that TradeBlock, under the leadership of Breanne Madigan, will commence the shutdown process, which will be effective starting May 31.
DCG and its collection of companies have encountered difficulties amidst the extended period of reduced cryptocurrency market activity. Following the earlier shutdown of its wealth-management division headquarters in January 2023, the closure of TradeBlock has now occurred.
In a previous report, Cointelegraph highlighted that several companies under the umbrella of DCG (Digital Currency Group) had recently experienced significant layoffs, affecting more than 500 employees. This unfortunate situation was triggered by the aftermath of FTX's collapse and the overall downturn in the cryptocurrency market.
DCG, a prominent venture capital conglomerate, has recently announced significant losses exceeding $1 billion for the year 2022. These losses were mainly attributed to the widespread repercussions stemming from the collapse of the cryptocurrency hedge fund known as Three Arrows Capital.
In a recent update, DCG, a cryptocurrency exchange, has reportedly failed to fulfill a debt payment of $630 million owed to Gemini. This has led to concerns about the financial stability of Gemini, which is now considering the possibility of granting DCG a forbearance option, allowing them more time to make the repayment.
Gemini mentioned that it would take into account the possibility of forbearance for DCG, enabling them to temporarily decrease or suspend payments, with the anticipation of resuming them at a later stage. However, Gemini also emphasized that their decision regarding forbearance would rely, in part, on DCG's willingness to actively participate in sincere discussions aimed at reaching a mutually agreeable arrangement.
