US State Regulators Are Looking Into Genesis Global Capital
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According to Barron's, the head of the Alabama Securities Commission, Joseph Borg said that his jurisdiction and a number of other regulators are taking part in investigations into the alleged connections between Genesis and retail investors, including whether Genesis and other cryptocurrency businesses may have broken securities laws. It is yet unknown which other firms are being probed.
Genesis Global Capital and FTX
Borg observed that the major focus of the inquiry is whether Genesis and other cryptocurrency businesses encouraged investors to buy assets connected to cryptocurrencies without first acquiring the necessary registration.
Since the corporation disclosed it had funds trapped in an FTX trading account worth approximately $175 million, the probe represents a new chapter in the Genesis tale. After FTX's demise on November 11 and extraordinary market turbulence, Genesis said on November 16 that withdrawals had been temporarily banned. According to reports, the company is having trouble acquiring capital for its loan division. Genesis, meanwhile, has denied rumors that it is "imminently" going bankrupt because of a $1 billion shortage.