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Crypto Lending Firm Genesis Under Investigation By A Number Of U.S. States

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.

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The company warned its investors afterwards, on November 21, that it was at serious risk of going bankrupt if sufficient capital was not raised. 

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.

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Barry Silbert believes that despite Genesis’ $575 million loan, it will come out of this phase stronger and even better. produces top quality content exposure for cryptocurrency and blockchain companies and startups. We have provided brand exposure for thousands of companies to date and you can be one of them too! All of our clients appreciate our value / pricing ratio. Contact us if you have any questions: Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.

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Jimmy Kelly

Jimmy is one of the news journalists for Tokenhell. He is a big crypto enthusiast and bought his first crypto token way back in 2015! Jimmy publishes updates about crypto tokens, events, price analysis and regulation among many other subjects.

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