Genesis Is Under Investigation by US Regulators

November 26, 2022

Following the collapse of FTX, multiple US regulatory agencies have opened investigations into FTX and other centralized exchanges

Several US States regulators have launched investigation into crypto lender Genesis Global Capital.

According to Barron's, this investigation is part of a broader probe into how connected many cryptocurrency companies are, and if these companies have violated state securities laws.

Several other states are part of the probe, Alabama Securities Commission Director Joseph Borg said.

State securities regulators are investigating about Genesis’s connection to retail investors, and whether it or other industry participants might have violated securities laws.

On November 16, Genesis suspended customer redemptions and new loan originations on its lending business, citing "abnormal withdrawal requests" after the FTX collapse.

The firm had reportedly sought an emergency infusion of $1 billion before halting withdrawals.