Digital Currency Group (DCG) is shutting down its trade execution and prime brokerage services subsidiary, TradeBlock, due to challenges posed by the crypto winter, the broader economy, and the US regulatory landscape.
TradeBlock, which was acquired by DCG’s CoinDesk in 2020 before being spun out as a separate entity, will cease operations at the end of May.
In 2022, DCG experienced a significant loss of $1.1 billion, largely attributed to the downturn in the cryptocurrency market and the collapse of Three Arrows Capital, where DCG was the largest creditor. Additionally, the group’s brokerage division, Genesis, recently filed for bankruptcy, reporting debts amounting to approximately $3.5 billion. This month, DCG allegedly missed a $630 million debt payment owed to Genesis.