Crypto lender Genesis subject of probe by regulators - Barron's




  • In Business
  • 2022-11-25 21:36:28Z
  • By Reuters
 

(Reuters) - State securities regulators are investigating Genesis Global Capital as part of a wide-ranging inquiry into the interconnectedness of crypto firms, Barron's reported on Friday citing a comment from the Alabama Securities Commission Director.

While it does not directly serve individual investors, Genesis backs products offered by crypto companies such as Circle Internet Financial, the principal operator of one of the largest stablecoins, USD Coin, and by Gemini. Those products pay yield to customers who deposit certain cryptocurrencies on the platforms.

The inquiry will look into Genesis's connection to such retail investors, and whether it or other industry participants might have violated securities laws, the report added.

Genesis and Alabama Securities Commission did not immediately respond to Reuters' requests for comment on the report.

In the aftermath of the collapse of crypto exchange FTX, Genesis suspended customer redemptions in a spillover effect citing "abnormal withdrawal requests" that exceeded its liquidity.

Earlier this week, the New York Times reported Genesis hired investment bank Moelis & Company to serve as the firm's restructuring advisor as it explored options including a potential bankruptcy.

Several crypto firms have been plagued by contagion concern from the fallout of the FTX collapse, with many counting their exposure in millions to the beleaguered exchange.

(Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)

COMMENTS

More Related News

While insiders own 24% of Northern Minerals Limited (ASX:NTU), individual investors are its largest shareholders with 48% ownership
While insiders own 24% of Northern Minerals Limited (ASX:NTU), individual investors are its largest shareholders with 48% ownership

Every investor in Northern Minerals Limited ( ASX:NTU ) should be aware of the most powerful shareholder groups. The...

While institutions invested in NexGen Energy Ltd. (TSE:NXE) benefited from last week
While institutions invested in NexGen Energy Ltd. (TSE:NXE) benefited from last week's 3.6% gain, individual investors stood to gain the most

To get a sense of who is truly in control of NexGen Energy Ltd. ( TSE:NXE ), it is important to understand the...

Mercedes-Benz Group AG
Mercedes-Benz Group AG's (ETR:MBG) largest shareholders are individual investors with 45% ownership, institutions own 29%

Every investor in Mercedes-Benz Group AG ( ETR:MBG ) should be aware of the most powerful shareholder groups. And the...

With 61% institutional ownership, Ten Entertainment Group plc (LON:TEG) is a favorite amongst the big guns
With 61% institutional ownership, Ten Entertainment Group plc (LON:TEG) is a favorite amongst the big guns

If you want to know who really controls Ten Entertainment Group plc ( LON:TEG ), then you'll have to look at the makeup...

Rayonier Inc. (NYSE:RYN) is a favorite amongst institutional investors who own 87%
Rayonier Inc. (NYSE:RYN) is a favorite amongst institutional investors who own 87%

To get a sense of who is truly in control of Rayonier Inc. ( NYSE:RYN ), it is important to understand the ownership...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business