US States start investigating Genesis. After the FTX crash, Genesis stopped processing customer withdrawals.
Genesis was $2.3 billion in debt after the third Arrows Capital bankruptcy. Due to the widespread impact of the FTX debacle, many US regulators are now looking at crypto exchanges and other middlemen.
According to Barron’s, regulators in several states are now looking into Genesis Global Capital. According to Alabama Securities Commission Director Joseph Borg, who spoke to Barron’s, “several other states” are involved in the investigation. Borg did not describe the other regions.
FTX Crash and Genesis
Barron’s reports that Genesis is being investigated as part of a larger investigation into the merger of several cryptocurrency companies. And there may be violations of land conservation laws. If a leader like FTX were to fail, Borg said, “everything that is interconnected and interconnected in the crypto space” would be at risk.
After the FTX crash, Genesis stopped processing customer foreclosures and new loan applications on November 16. The agency cited a “poor political request.” Before the political hiatus, the company reportedly asked for an emergency injection of $1 billion.
Gemini Earn accounts are managed through a partnership with Genesis. So, when Genesis stopped taking it down, Gemini needed to notify consumers about the delay. On November 21, Genesis had already told its investors that the company could collapse if no more money was received.
Barry Silbert, CEO of Genesis Digital Currency Group’s parent company, sent a letter to investors on Tuesday, insisting that the company has a bright future despite Genesis’ $575 million. Genesis is $2.3 billion in debt after Three Arrows Capital (3AC) collapsed earlier this year, and now it faces another investigation on top of that.