Several U.S. regulators are examining possible violations of law by the financially troubled crypto lender Genesis Global Capital. Barron\u2019s reports.<\/p>\n
According to Alabama Securities Commission Director Joseph Borg, the investigation focuses on several entities.<\/p>\n
Regulators in multiple states will examine Genesis Global Capital and other firms for soliciting retail investments in crypto-related securities without proper registration.<\/p>\n
Borg declined to name other participants in the investigation.<\/p>\n
Previously, Genesis frozen withdrawals<\/a> and the issuance of new loans, citing heightened withdrawal requests from clients after the FTX collapse<\/a>. According to NYT sources, the company did not rule out bankruptcy<\/a>.<\/p>\n The WSJ reported a request by Genesis emergency financing<\/a> of $1 billion. According to reports, Binance refused to rescue the company<\/a> due to potential conflicts of interest with parent Digital Currency Group Barry Silbert.<\/p>\n To avoid bankruptcy, Genesis needs to raise at least $500 million<\/a> in financing, according to Messari CEO Ryan Selkis.<\/p>\n