Genesis Global Trading Is Being Investigated And Is Being Closely Examined Right Now
The failure of the well-known cryptocurrency exchange is an event that will be remembered for all time in the cryptocurrency sector. Just that one collapse was enough to successfully spark a number of subsequent falls, one of which was the lending portion of Genesis Global Trading.
After the failure of the FTX exchange, Genesis Global Trading announced the closing of its lending arm. The company cited the overwhelming amount of withdrawal requests that the lending firm had received as the basis for the decision.
However, a confidential document that was subsequently made public showed that the reason given by Genesis may have been a convenient lie and a total sham. This is due to the fact that the company had already sent an internal memo to investors requesting a loan to the tune of $1 billion, but they were unable to secure financing for the loan.
After the event, on November 21, the firm communicated to its shareholders that it posed an imminent threat of collapsing into insolvency in the event that adequate funds were not raised.
According to Joseph Borg, the director of the Alabama Securities Commission, the Alabama Securities Commission as well as a considerable number of other state securities commissions are actively investigating Genesis Global Trading.
According to Director Joseph Borg, it would appear that Genesis is not under investigation as a result of a specific action, but rather as a result of an investigation into the relationship between various crypto firms and whether or not these firms have, at any point in time, flouted laws pertaining to state security. The investigation is being conducted in order to determine whether or not these firms have violated these laws at any point in time.
This new development, according to Director Borg, is a necessary pill to chew, especially in light of the collapse of FTX, which was considered to be one of the most important companies in the business.
The Genesis Global Trading Company, on the other hand, has refrained from providing any public commentary regarding this new information.
In spite of the difficulties, Barry Silbert continues to have a positive outlook.
Despite the fact that withdrawals from the lending section of Genesis Global Trading were halted, and despite the warning that was issued later on the 21st of November about an imminent threat of bankruptcy, the chief executive officer of Digital Currency Group, which is the parent company of Genesis, has stated that everything is fine with DCG. Genesis Global Trading is a subsidiary of Digital Currency Group.
In spite of the fact that Genesis took out a loan of $575 million, Barry Silbert is certain that the company will emerge from this stage even stronger and more successful.