- TradeBlock will reportedly begin winding down operations on May 31st.
- The protracted crypto winter has been difficult for DCG and the firms in its portfolio.
Digital Currency Group (DCG), a venture capital firm, has decided to shut down its main brokerage subsidiary TradeBlock due to the general economic climate and the ambiguity surrounding crypto regulation in the United States. Led by Breanne Madigan, TradeBlock will reportedly begin winding down operations on May 31st.
A company spokesperson stated:
“Due to the state of the broader economy and prolonged crypto winter, along with the challenging regulatory environment for digital assets in the US, we made the decision to sunset the institutional trading platform side of the business.”
Trouble Continues for DCG
The protracted crypto winter has been difficult for DCG and the firms in its portfolio. TradeBlock’s demise follows DCG’s January 2023 decision to close the headquarters of its wealth-management business.
It previously revealed that as a consequence of the ripple effect of FTX’s demise and the crypto market fall, DCG firms had laid off roughly 500 staff.
DCG, a multinational venture capital firm, reported 2022 losses of more than $1 billion. The failure of the crypto hedge fund Three Arrows Capital was largely blamed for the losses. Recently, DCG failed to pay $630 million in debt owing to Gemini. After DCG missed a $630 million payments, the struggling crypto exchange Gemini is reportedly considering a forbearance option.
DCG, as the borrower, might apply for forbearance in order to temporarily decrease or discontinue payments. Gemini noted that DCG’s desire to negotiate in good faith was a factor in whether or not it would contemplate forbearance.
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- Source: https://thenewscrypto.com/dcg-announces-shut-down-of-brokerage-division-tradeblock/