Following the collapse of the famous crypto hedge fund, Three Arrows Capital (3AC), and the popular crypto exchange, FTX, Genesis Global Trading has been in the limelight for the wrong reasons. Especially with the purported news of being at risk of bankruptcy, several U.S. states have started to investigate the crypto firm.
Genesis Global Trading Under Serious Scrutiny And Investigation
The famous crypto exchange’s collapse is one that will forever be remembered in the crypto industry. That one fall alone has successfully triggered several others, including the lending section of Genesis Global Trading.
Following the folding up of the FTX exchange, Genesis Global Trading announced its lending arm, pinning the reason on the sheer number of withdrawal requests the lending firm had gotten.
However, a confidential document that was subsequently leaked showed that the reason given by Genesis might have been a convenient lie and a total sham, seeing that the firm had already sent an internal memo to investors seeking a loan to the tune of $1 billion, which turned out to be unsuccessful.
The company warned its investors afterwards, on November 21, that it was at serious risk of going bankrupt if sufficient capital was not raised.
Also read:According to Joseph Borg, the director of the Alabama Securities Commission, Genesis Global Trading is currently being investigated by the Alabama Securities Commission and a significant number of other states too.
According to Director Joseph Borg, it appears as if Genesis is not under scrutiny because of a particular action, but rather because of an investigation of the relationship between various crypto firms and whether these firms have, at any point in time, flouted laws pertaining to state security.
This development, according to Director Borg, is a necessary pill to swallow, especially since the fall of FTX, which was one of the key players in the industry.
The Genesis Global Trading Company has however not made a public comment on this development.
Despite The Odds, Barry Silbert Remains Optimistic
Despite the suspension of withdrawals from the lending section of Genesis Global Trading and the warning that was released later on the 21st of November about an impending threat of bankruptcy, the chief executive officer of Digital Currency Group, which is the parent company of Genesis, has stated that all is well with DCG.
Barry Silbert believes that despite Genesis’ $575 million loan, it will come out of this phase stronger and even better.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.