The fall of the FTX cryptocurrency exchange has an impact on the entire cryptocurrency market. And it seems to have caused a kind of domino effect as more traders face problems. US regulators are the latest to shine a light on cryptocurrency lender Genesis Global Capital.
The Alabama Securities and Exchange Commission will conduct the investigation
The company will be investigated by the Alabama Securities and Exchange Commission. This was reported by the Reuters agency with reference to the Barrons.com portal. The aim of the investigation is to establish Genesis Global Capital’s connection to other cryptocurrency traders.
Genesis sourced products from other companies
Although Genesis itself did not provide services to individual investors, it sponsored products offered by other cryptocurrency companies such as Circle Internet Financial or Gemini. At the same time, Circle Internet Financial is the main trader of the largest stablecoin, USD Coin. The aforementioned cryptocurrency traders pay returns to their clients who deposit their cryptocurrencies with these platforms.
The investigation will focus on Genesis’ ties to retail investors. The regulator also wants to check whether there were any violations of the law during the performance of the activity. The New York Times reported a few days ago that Genesis has hired investment bank Moelis & Company to prepare a restructuring.
