US Regulators to Investigate Genesis and Other Crypto Firms

The State of Alabama and several other states are investigating alleged securities violations and ties to retail investors.< /p> Cryptocurrency lending company Genesis Global Capital and other crypto firms are under investigation by securities regulators in the United States, according to reports from November 25.

Joseph Borg, director of the Alabama Securities Commission, has confirmed that his state and several other states are participating in investigations regarding Genesis's alleged ties to retail investors, including whether Genesis and other crypto companies allegedly violated securities laws, Barron reported. It remains unclear which other companies are under investigation.

Borg noted that the investigation focuses on whether Genesis and other crypto companies influenced investors on crypto-related securities without obtaining proper registration.

The investigation is another chapter in the Genesis saga after the company revealed around $175 million in funds locked in an FTX trading account. On November 16, Genesis announced that it had temporarily suspended withdrawals, citing "unprecedented market turbulence" following FTX's November 11 collapse.

The company would have difficulty raising funds for its loan unit. However, Genesis has refuted speculation of "imminent" bankruptcy due to a $1 billion shortfall. The company said...