State securities regulators have declared Genesis Global Capital Reportedly under investigation. Barron’s reported on Friday that it will extensively examine the “interconnectivity of cryptocurrency companies.” The report notes that the Alabama Securities Commission is investigating whether cryptocurrency firms violated securities laws by failing to properly register.
Reports say financial regulators are investigating the interconnected activities of Genesis Global Capital and other crypto firms
Genesis announced November 2022 16 , it had temporarily suspended withdrawals and new loan originations. A few days later, the New York Times (NYT) reported that Genesis Global Capital had hired a restructuring advisor. The NYT reported that Genesis had “hired investment bank Moelis & Company to explore options, including possible bankruptcy, three people familiar with the situation said.” } However, reports published byThe BlockandThe Wall Street Journalallege Barry Silver, CEO of Genesis parent company Digital Currency Group (DCG). I am sharing a letter written by ). Silbert’s letter assures DCG shareholders that his company will “continue to be the leading builder in the industry.” Silbert referred to Genesis in his letter to shareholders, noting that Genesis’ lending division “has not impacted Genesis’ spot and derivatives trading or custody business and is operating as normal.” emphasized the importance of
On Friday Barron author Joe Light reported on his Genesis Global Capital,report alleges state securities regulators were involved in Genesis investigation is doing. Wright cited the Alabama Securities Commission and its director, Joseph Bogue, as one of the states investigating the alleged “cryptocurrency company interconnectivity.”
Wright’s report indicates that agencies in “several other states” were ostensibly involved in the investigation, but Genesis is the only other cryptocurrency firm mentioned. It is “Borg refused to name the other companies,” details the authors of the journal. The report further asserts that the general focus of the investigation was “whether Genesis or other companies induced residents to invest in cryptocurrency-related securities without proper registration.” there is
US state securities regulators have been cracking down and investigating cryptocurrency companies for some time. Certain state regulators have filed lawsuits against a number of cryptocurrency companies including Celsius, Blockfi, Nexo and FTX. The complaints from securities regulators are all very similar, questioning whether crypto companies are selling unregistered securities to retail investors.
What are your thoughts on reports of investigations into the interconnectivity of Genesis and cryptocurrency companies? Let us know what you think about this in the comments section below. Please let me know.
Image Credits: Shutterstock, Pixabay, Wiki Commons