The institutional cryptocurrency lender Genesis is the subject of close scrutiny from a number of state securities authorities. Because it is possible that Genesis violated securities laws, they are conducting an investigation against the company as part of a “broad-ranging examination into the interconnection of crypto businesses.”
Joseph Borg, the director of the Alabama Securities Commission, said that the primary emphasis of the investigation is on determining whether or not Genesis and other organizations improperly induced citizens of Alabama to invest in crypto-related securities that were not legally registered.
Genesis does not directly service individual investors but does promote the goods that other cryptocurrency firms provide. Customers who deposit certain cryptocurrencies on the platforms are eligible to obtain a yield on the items that these platforms provide.
Genesis Global Capital and its lending business, which is controlled by Digital Currency Group (DCG), has received a significant amount of attention recently since DCG was forced to take out an emergency loan of $1 billion before temporarily banning withdrawals.
A few days later, it was discovered that Genesis is having trouble raising fresh capital for its lending section, and the firm has informed prospective investors that it may have to declare bankruptcy in the near future. Reportedly, in order to prevent this from happening, they have brought on a reoApplyrganization specialist.
Compiled by Coinbold