Digital Currency Group, a venture capital conglomerate, has decided to close TradeBlock, its primary brokerage subsidiary, as it cited the state of the broader economy, and an uncertain environment for the crypto industry in the country.
According to a Bloomberg report from the 25th of May, TradeBlock, which is headed by Breanne Madigan, will officially start the process of shutting down- effective by 31st May. A spokesperson for the company informed Bloomberg that due to the state of the prolonged crypto winter and the broader economy, coupled with the challenging regulatory environment for the growth of digital assets in the country, they had made the decision to shut down the institutional platform side of the business.
Digital Currency Group Will Be Shutting Down By TradeBlock
The Digital Currency Group and its portfolio of companies have already faced multiple challenges over the prolonged crypto winter. The closure of the TradeBlock also comes with the DCG previously shutting down its wealth-management division headquarters in January 2023. Previously, Cointelegraph had reported that the CDG companies had laid off around 500 employees as a result of contagion from the collapse of FTX, as well as the crypto downturn. The venture capital conglomerate DCG had also disclosed the losses which exceeded $1 billion in 2022. These losses were mostly attributed to the butterfly effect which was the result of the downfall of Three Arrows Capital, the cryptocurrency hedge fund.
Recently, the Digital Currency Group missed out on a $630 million debt payment that was owed to Gemini. Gemini, which is quite a troubled cryptocurrency exchange, has been considered to be contemplating a forbearance option that would be in relation to DCG, which then failed to make a $630 million repayment.
