February 27, 2024

Media: American regulators are investigating the activities of Genesis Global Capital

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Media: American regulators are investigating the activities of Genesis Global Capital

According to Barron's,The crypto-credit service Genesis Global Capital became the object of an investigation by American regulators in connection with the suspension of the withdrawal of funds and the company’s liquidity crisis.

The publication reports that the investigation has become“Part of a broader investigation into the relationship between cryptocurrency firms, Genesis’s ties to retail investors, and possible violations of securities laws by both Genesis and other companies.”

It is unclear whether federalregulators, but at a minimum Alabama regulatory agencies are investigating. They are trying to assess whether Genesis was one of those firms that "enticed residents to invest in cryptocurrency-related securities without properly registering their offerings." However, state regulators did not respond to Barron’s requests.

Let us remind you that Genesis Global Capital isa subsidiary of the venture capital company Digital Currency Group (DGC). Despite DGC's significant resources, Genesis recently sought $1 billion in investment to save the business. At the same time, as the WSJ previously reported, the Binance exchange will not be able to provide financial assistance due to a conflict of interest.