Lending platform Genesis is currently under investigation by regulatory authorities! Assessing potential violations of securities laws and its relationships with other companies.
The lending platform Genesis has encountered liquidity issues due to the double blow of the bankruptcy events of 3AC and FTX, and has suspended user withdrawals since mid-November. With the situation yet to improve, there are now reports of Genesis being investigated by US regulatory authorities.
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Genesis Under Investigation by Regulatory Authorities
According to a report by Barron's, regulatory authorities in several states, including Alabama, are investigating Genesis. The investigation is looking into the relationships between cryptocurrency companies, the relationship between Genesis and retail customers, and whether industry participants have violated securities laws.
Joseph Borg, Director of the Alabama Securities Commission, stated:
The investigation is primarily focused on whether Genesis and other companies have been inducing people to invest in cryptocurrency-related securities without proper registration. This new investigation is a response to the collapse of FTX and other companies.
According to previous reports, Genesis has claimed $1.2 billion from 3AC after its bankruptcy, and the FTX incident has led to further liquidity tightening, with efforts currently being made to navigate through the crisis.
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