US Regulators Open Probe into Genesis Global Capital

Several U.S. regulators are examining possible violations of law by the financially troubled crypto lender Genesis Global Capital. Barron’s reports.

According to Alabama Securities Commission Director Joseph Borg, the investigation focuses on several entities.

Regulators in multiple states will examine Genesis Global Capital and other firms for soliciting retail investments in crypto-related securities without proper registration.

Borg declined to name other participants in the investigation.

Previously, Genesis frozen withdrawals and the issuance of new loans, citing heightened withdrawal requests from clients after the FTX collapse. According to NYT sources, the company did not rule out bankruptcy.

The WSJ reported a request by Genesis emergency financing of $1 billion. According to reports, Binance refused to rescue the company due to potential conflicts of interest with parent Digital Currency Group Barry Silbert.

To avoid bankruptcy, Genesis needs to raise at least $500 million in financing, according to Messari CEO Ryan Selkis.

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