{"id":50724,"date":"2023-05-26T09:13:19","date_gmt":"2023-05-26T13:13:19","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=50724"},"modified":"2023-05-26T09:23:59","modified_gmt":"2023-05-26T13:23:59","slug":"dcg-closes-tradeblock-due-to-crypto-regulatory-challenges","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/dcg-closes-tradeblock-due-to-crypto-regulatory-challenges\/","title":{"rendered":"DCG Closes TradeBlock Due to Crypto Regulatory Challenges"},"content":{"rendered":"\n<p>Digital Currency Group is closing its institutional trading platform, TradeBlock, due to market and legal challenges.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"750\" height=\"500\" src=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/05\/dcg-.jpeg\" alt=\"DCG Closes TradeBlock Due to Crypto Regulatory Challenges\" class=\"wp-image-50732\" srcset=\"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/05\/dcg-.jpeg 750w, https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/05\/dcg--300x200.jpeg 300w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/figure>\n\n\n\n<p>According to a <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-05-25\/digital-currency-group-closes-tradeblock-institutional-platform?leadSource=uverify%20wall#xj4y7vzkg\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Bloomberg report<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><g id=\"wpil-svg-outbound-7-icon-path\" fill=\"none\" clip-path=\"url(#clip0_31_188)\">\r\n                            <path d=\"M9.16724 14.8891L20.1672 3.88908\" stroke-linecap=\"round\"\/>\r\n                            <path d=\"M13.4497 3.53554L20.5208 3.53554L20.5208 10.6066\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n                            <path d=\"M17.5 13.5L17.5 16.26C17.5 17.4179 17.5 17.9968 17.2675 18.4359C17.0799 18.7902 16.7902 19.0799 16.4359 19.2675C15.9968 19.5 15.4179 19.5 14.26 19.5L7.74 19.5C6.58213 19.5 6.0032 19.5 5.56414 19.2675C5.20983 19.0799 4.92007 18.7902 4.73247 18.4359C4.5 17.9968 4.5 17.4179 4.5 16.26L4.5 9.74C4.5 8.58213 4.5 8.0032 4.73247 7.56414C4.92007 7.20983 5.20982 6.92007 5.56414 6.73247C6.0032 6.5 6.58213 6.5 7.74 6.5L11 6.5\" stroke-linecap=\"round\"\/>\r\n                        <\/g>\r\n                        <defs>\r\n                            <clipPath id=\"clip0_31_188\">\r\n                                <rect fill=\"white\" height=\"24\" width=\"24\"\/>\r\n                            <\/clipPath>\r\n                        <\/defs><\/svg><\/span><\/a>, TradeBlock, a subsidiary of Digital Currency Group (DCG), will cease its operations on May 31. The platform offers trade execution and prime brokerage services to institutional investors in the crypto space.<\/p>\n\n\n\n<p>A DCG spokesperson said the prolonged crypto market downturn and the challenging regulatory environment for digital assets in the US drove the decision to sunset TradeBlock.<\/p>\n\n\n\n<p>TradeBlock was acquired by CoinDesk Inc., another DCG offshoot, in 2020. The financial details of the deal were not disclosed. CoinDesk integrated <\/p>\n\n\n\n<p>TradeBlock's indexing business into its own and spun out the remaining operations under the TradeBlock brand.<\/p>\n\n\n\n<p>The move surprises some industry observers, as <a href=\"https:\/\/dcg.co\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">DCG<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a> had previously indicated that it was planning to focus on its core business. <\/p>\n\n\n\n<p>DCG is a venture capital firm that has invested in over 200 crypto companies, including Coinbase, Circle, BitGo, Blockstream, Chainalysis and Ledger.<\/p>\n\n\n\n<p>DCG owns five subsidiaries: <a href=\"https:\/\/coinscreed.com\/staging\/coindesk-reportedly-considers-sale-option.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">CoinDesk<\/a>, <a href=\"https:\/\/coinscreed.com\/staging\/foundryx-an-ebay-itcoin-mining-is-launch-by-foundry.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Foundry<\/a>, <a href=\"https:\/\/coinscreed.com\/staging\/genesis-sues-bitcoin-jesus-for-20m-over-unsettled-crypto-options.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Genesis<\/a>, <a href=\"https:\/\/coinscreed.com\/staging\/grayscale-investments-launches-7-new-smart-contract-funds.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Grayscale Investments<\/a> and <a href=\"https:\/\/coinscreed.com\/staging\/dcgs-crypto-exchange-luno-axes-35-of-its-staff.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Luno<\/a>. <\/p>\n\n\n\n<p>These businesses provide various services to the crypto industry, such as media and events, mining solutions, lending and custody, asset management and exchange.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-dcg-struggles-with-financial-and-legal-issues\">DCG Struggles with Financial and Legal Issues<\/h3>\n\n\n\n<p>The closure of TradeBlock is one of many challenges that DCG is facing. The firm is also trying to sell its bankrupt lending subsidiary Genesis, which owes about $3.4 billion to its creditors.<\/p>\n\n\n\n<p>Genesis filed for <a href=\"https:\/\/coinscreed.com\/staging\/genesis-global-files-for-bankruptcy.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">bankruptcy<\/a> in January 2023 due to bad loans to failed crypto lenders; Babel Finance and Three Arrows Capital (3AC).<\/p>\n\n\n\n<p>DCG had taken on some of Genesis' debts to keep it afloat but failed to repay $630 million of debt to Genesis' bankruptcy estate earlier this month.<\/p>\n\n\n\n<p>This prompted a legal threat from Gemini CEO Winklevoss to sue DCG and Silbert for a $900 million loan payment<\/p>\n\n\n\n<p>DCG said it intends to address its obligations to Genesis during a restructuring. In addition, the company stated that it is in talks with capital providers for growth capital and to refinance its outstanding intercompany obligations with Genesis.<\/p>\n\n\n\n<p>The firm is also facing regulatory scrutiny from the US Securities and Exchange Commission (SEC), which has investigated its asset management subsidiary, Grayscale Investments, over its Bitcoin Trust (GBTC) product. <\/p>\n\n\n\n<p>The SEC has been probing whether Grayscale violated securities laws by selling unregistered GBTC shares.<\/p>\n\n\n\n<p><a href=\"https:\/\/grayscale.co\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Grayscale<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a> has been trying to convert GBTC into an exchange-traded fund (ETF), but the SEC is yet to approve it. As of September 2021, GBTC is the world's largest publicly traded Bitcoin fund, with over $50 billion in assets under management.<\/p>\n\n\n\n<p>DCG is one of the most prominent and influential participants in the crypto industry. Its fate will have significant implications for the future of the sector.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Digital Currency Group is closing its institutional trading platform, TradeBlock, due to market and legal challenges. According to a Bloomberg report , TradeBlock, a subsidiary of Digital Currency Group (DCG), will cease its operations on May 31. The platform offers trade execution and prime brokerage services to institutional investors in the crypto space. A DCG [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":50732,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32],"tags":[376,13047,14607],"class_list":["post-50724","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchange-news","tag-cryptocurrencies","tag-dcg-2","tag-tradeblock"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/05\/dcg-.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/50724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=50724"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/50724\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/50732"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=50724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=50724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=50724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}