US regulators have begun investigating crypto firm Genesis.
Several regulators, including the Alabama Securities Commission, have scrutinized whether Genesis violated securities laws.
US Regulators Investigating Firm in Embarrassment
Several US state regulators are investigating whether crypto firm Genesis Global Capital violated securities laws, Barron’s reported.
According to the report, Alabama Securities Commission Director Joseph Borg and other state regulators are focused on whether Genesis is persuading state residents to invest in crypto securities without proper registration. Borg did not name the other companies investigated.
The Genesis and Alababa Securities Commission did not respond to a request for comment on the matter.
Earlier this week, Genesis announced that it had been struggling with investing in both FTX and Three Arrows Capital, and announced that it could go bankrupt if it couldn’t find funding.
The company spent most of November struggling to raise capital and reach settlements with creditors.
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