Genesis Global Trading

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Genesis Global Trading
Genesis trading.jpg
Founded 2013
Headquarters New York, New York
Key People Derar Islim, Interim Chief Executive
Products Broker Dealer Focused on Digital Currencies
Twitter @GenesisTrading
LinkedIn Profile
Facebook Page
Website Genesis Trading home

Genesis Global Trading (aka Genesis Global Capital) is a subsidiary of Barry Silbert's Digital Currency Group, which was launched in 2015 with funding from Bain Capital Ventures, MasterCard, New York Life and other firms. Genesis Trading originated as the bitcoin trading division of SecondMarket, which Silbert owned and operated.[1]

The Digital Currency Group has operated Genesis Trading from the time of the Digital Currency Group's launch.[2]

Genesis received the fifth "BitLicense" ever issued by the New York Department of Financial Services.[3] The BitLicense allows Genesis Trading to broker trades for institutional and high net worth investors in bitcoin, Ethereum, Ethereum Classic, Bitcoin Cash, Ripple, Litecoin, and Zcash.[4]

According to The Block, an online cryptocurrency-focused news service, Genesis Trading told its clients in an email that it had experienced a 50% increase in OTC trading in 2018.[5]

In January 2019, BitGo and Genesis Trading announced a new partnership in order to offer cryptocurrency trading services off-exchange. According to Genesis Trading's then-CEO Michael Moro, clients of BitGo would be able to trade through Genesis Trading cryptocurrency that is deposited with BitGo without having to go through an exchange. This allows them to execute trades without their digital assets ever leaving BitGo's custody.[6]

In August of 2022, Genesis laid off 20% of its 260-person workforce amid a restructuring that included the departure of then-CEO Michael Moro.[7]

In September of 2022, Genesis faced potential losses into the hundreds of millions, according to reports, related in part to exposure to the hedge fund Three Arrows Capital, which was over-leveraged, and the Hong Kong-based crypto lender Babel Finance.  The collapse of Three Arrows Capital led to substantial potential losses at numerous crypto lending firms.[8]

In November 2022, the fallout from the collapse of Sam Bankman-Fried’s FTX reached Genesis, which suspended redemptions and new loan originations at its lending business after the unit faced withdrawal requests that exceeded its current liquidity. Gemini Trust then announced that its high-yield product for retail investors, Gemini Earn, would also halt redemptions, as Genesis was a key partner in the program.[9] Genesis had loans outstanding to Alameda Research, an affiliated trading firm of FTX, using FTX’s own cryptocurrency as collateral.

In January 2023, the SEC charged Genesis Global and its former business partner Gemini with selling unregistered securities through Gemini Earn.[10]

Genesis filed for Chapter 11 bankruptcy on January 19, 2023 in Manhattan, saying it was the best way for it to achieve “an optimal outcome for Genesis clients.” According to its bankruptcy filing, Genesis’ lending unit said it had assets and liabilities in the range of $1 billion to $10 billion and had more than 100,000 creditors. It said it had about $150 million in cash on hand to support its operations during restructuring. Gemini is among its creditors.[11]

In September 2023, Genesis Global Trading said it would wind down its spot trading crypto trading service as of Sept. 18 for “business reasons.” Its spot and derivatives trading services through GGC International remain operational, the company said. A spokesperson said Genesis Global was working closely with regulatory authorities to coordinate an orderly discontinuation of services.[12]

Key People[edit]

References[edit]