Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
- TradeBlock is expected to start the process of winding down operations on May 31st.
- The extended crypto winter has posed challenges for DCG and its portfolio companies.
Digital Currency Group (DCG), a venture capital entity, has opted to close its primary brokerage subsidiary TradeBlock due to the prevailing economic conditions and the uncertainty surrounding cryptocurrency regulation in the United States. Under the leadership of Breanne Madigan, TradeBlock is set to begin winding down operations on May 31st.
A representative from the company remarked:
“In light of the current state of the broader economy and the ongoing crypto winter, coupled with the difficult regulatory landscape for digital assets in the US, we have decided to discontinue the institutional trading platform segment of the business.”
Related Posts
Ongoing Challenges for DCG
The extended crypto winter has created significant difficulties for DCG and the companies within its portfolio. The closure of TradeBlock follows DCG’s January 2023 announcement regarding the shutdown of its wealth-management business headquarters.
It had previously disclosed that, as a result of the cascading effects from FTX’s collapse and the downturn in the crypto market, DCG firms had reduced their workforce by approximately 500 employees.
DCG, a global venture capital firm, reported losses exceeding $1 billion for 2022. The failure of the crypto hedge fund Three Arrows Capital was primarily attributed to these losses. Recently, DCG defaulted on a $630 million debt owed to Gemini. Following DCG’s missed payment, the struggling crypto exchange Gemini is reportedly exploring a forbearance option.
As the borrower, DCG may seek forbearance to temporarily reduce or halt payments. Gemini indicated that DCG’s willingness to negotiate in good faith would influence its consideration of forbearance.
