Venture capital conglomerate Digital Currency Group (DCG) is shutting down its brokerage subsidiary TradeBlock, citing the state of the broader economy and uncertain regulatory environment for cryptocurrencies in the United States.
According to a May 25 report from Bloomberg, TradeBlock, led by Breanne Madigan, will officially begin the shutdown process effective May 31.
“Due to the state of the broader economy and a prolonged crypto winter, coupled with the challenging regulatory environment for digital assets in the US, we have made the decision to cease business operations. trading on an institutional trading platform,” a spokesperson told Bloomberg.
DCG and its portfolio of companies have faced challenges during the long crypto winter. The TradeBlock closure comes after DCG previously closed its asset management division headquarters in January 2023.
DCG has laid off more than 500 employees due to the contagion from the FTX crash and crypto downturn.
Venture capital group DCG also disclosed losses in excess of $1 billion in 2022. The losses were largely due to a ripple effect caused by the collapse of crypto hedge fund Three Arrows Capital.