- Digital Currency Group has decided to close its subsidiary TradeBlock.
- The decision is a result of the difficult market conditions that followed the long crypto winter and the fall of crypto giants.
- The report stated that TradeBlock would start the procedures to cease services on May 31.
Recent reports revealed that the venture capital conglomerate Digital Currency Group (DCG) has decided to shut down its institutional trading platform TradeBlock which provided trading and brokerage services to investors.
According to a Bloomberg report published on May 26, Breanne Madigan’s TradeBlock will officially cease its activities on May 31. DCG’s decision to end the services of its subsidiary has been a result of the strained market conditions that followed the bankruptcy filing of Genesis Global Hodco.
On May 26, Bloomberg shared the news on Twitter stating, “Barry Silbert’s crypto conglomerate, Digital Currency Group, is shuttering its TradeBlock institutional trading platform”:
The macroeconomic conditions affecting the crypto space, along with the sudden fall of the crypto giant FTX, have seriously affected the firm, as per the words of the people familiar with the matter. The prolonged crypto winter that has been a major crisis that hit the whole industry equally affected DCG. As a result, the platform closed its wealth management division headquarters in January.
A spokesperson commented on DCG’s move quoting:
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.
The previous year, as reported by CoinDesk, DCG lost an amount of almost $1.1 billion as a consequence of the downward trend of the crypto market, especially due to the fall of the crypto hedge fund Three Arrows Capital (3AC). At the end of 2022, the firm held just $262 million in cash.