Crypto lender Genesis Glabal Capital may be worried, as the news is not good right now. Indeed, the American regulators would have started investigations against the platform. This procedure is part of the overall investigation of the independence of crypto platforms. It is about verifying the bond that Genesis has with retail investors. Regulators would like to ensure that in its sovereign activities, Genesis has not violated the laws relating to real estate values.
Did Genesis violate securities laws?
Since November 25, the real estate regulators in the United States are hard at work. They want to purge the sector of bad seeds to avoid a fall similar to that of FTX. Their latest target is none other than Genesis, the crypto lender. Admittedly, the platform is not reputed to serve individual investors directly, but it proceeds through an intermediary company. For example, she is used to supporting the products that the company promotes Circle Internet Financialone of the major operators of USDC. What you need to know is that the products that Genesis backs return a gain to investors who choose to deposit certain crypto on the platform.
It’s here alabama real estate securities commission who supervises the ongoing investigations. The institution must at the end of this investigation, establish whether Genesis Global Capital and other crypto players have violated the regulations. For the moment, the first advances are confidential and the institution of control did not want to make any comment, it is the same of Genesis.
Let’s remember that after the crash of FTX, a strange thing would have happened on Genesis. The platform immediately suspended all buyback transactions tempted by investors. The platform would have blocked the transactions because it deemed them to be abnormal. Moreover, the requested withdrawals were well in excess of its liquidity.
According to the information put forward by our colleagues from the New York Times earlier this week, Genesis would have recruited Moélis & Company. This investment bank will play the role of adviser for the restructuring of the company.
Conclusion
It must ultimately be said that the bankruptcy of FTX pushes companies to be cautious and in the worst case to prepare for a possible bankruptcy to better anticipate. The consequences of the debacle of Sam Bankman-Fried’s business are increasingly serious. Some companies face exposure that runs into the millions.
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