States, including Alabama, are investigating whether crypto businesses have broken securities laws.
According to Barron’s, U.S. state securities authorities are conducting an investigation into Genesis Global Capital.
This is all a part of an investigation into “the extent to which various crypto businesses are interrelated, Genesis’ relationship to retail investors, and if Genesis or other industry players may have broken securities laws.”
According to the article, Alabama is one of the states investigating whether Genesis and other companies “encouraged people to invest in crypto-related assets without filing the required registrations.” The Alabama Securities Commission did not answer calls, and the firm declined to comment on the matter.
In the aftermath of FTX’s demise, Digital Currency Group’s lending arm temporarily ceased redemptions and new loan originations last week, and its financial viability has been questioned.
This week, DCG CEO Barry Silbert addressed what he termed the “noise” surrounding the firm, stating that it will emerge from the present climate “stronger” in response to media suggestions that Genesis may need to file for bankruptcy. The New York Times stated that it has enlisted the services of the financial firm Moelis & Company to evaluate its alternatives.
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