State securities regulators investigate Genesis – Regulation Bitcoin

According to a report that was published by Barron's on Friday, state securities regulators are reportedly looking into Genesis Global Capital as part of a larger investigation into the "interconnectedness of crypto firms." According to the report, the Alabama Securities

 

According to a report, financial regulators are looking into Genesis Global Capital as well as the activities of other cryptocurrency companies that are tied to it.
Since Genesis announced on November 16, 2022 that it would temporarily suspend withdrawals and new loan originations, there has been a lot of attention placed on Genesis Global Capital and its lending operation. This is because of the announcement. A few days later, it was reported by the New York Times (NYT) that Genesis Global Capital had retained the services of a restructuring adviser. According to a report published by the New York Times, Genesis "hired the investment bank Moelis Company to explore options including a potential bankruptcy," as stated by three individuals who are familiar with the situation.


On the other hand, articles that were printed in The Block and the Wall Street Journal shared a letter that was written by Barry Silbert, the CEO of the parent company Digital Currency Group, which owns Genesis. Shareholders of DCG are given peace of mind by Silbert's letter, which states that their company will "continue to be a leading builder of the industry." Silbert did mention Genesis in the shareholder letter, and he emphasized how important it is to take note of the fact that the lending arm of Genesis has "no impact on Genesis' spot and derivatives trading or custody businesses, which continue to operate as usual."

Barron's author Joe Light published a piece on Genesis Global Capital on Friday. The article claims that state securities regulators are involved in an alleged investigation into Genesis, and the article was published by Barron's. According to Light, one of the states that is investigating the purported "interconnectedness of crypto firms" is Alabama, specifically the Alabama Securities Commission, which is led by Joseph Borg.


According to the report by Light, the apparent investigation is being conducted in conjunction with agencies from "several other states," but in terms of other cryptocurrency companies, only Genesis was mentioned. According to the information provided by the author of Barron's, "Borg declined to name the other companies." In addition, the report asserts that the primary focus of the investigation is on "determining whether Genesis and other companies enticed residents to invest in crypto-related securities without making the proper registrations."

State securities regulators in the United States have been conducting investigations into cryptocurrency companies for some time now and have begun cracking down on the industry. Numerous cryptocurrency companies, including Celsius, Blockfi, Nexo, and FTX, have been targeted by regulators from a variety of states who have initiated legal proceedings against the companies. All of the complaints that have been lodged with the securities regulators share a common theme: they question whether or not cryptocurrency companies are selling unregistered securities to retail investors.


Ojike Stella

1727 Blog indlæg

Kommentarer
Francis Precious 36 i

Ookk