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    US Regulators Investigate Crypto Trading Firm Genesis

    Cryptory.net - Genesis Global Capital is being investigated by US securities regulators, Barron reported on November 25.

    The inquiry will determine whether Genesis and other (undisclosed) crypto companies have violated securities laws.

    As in the news, Alabama is one of the states that is coordinating the investigation of Genesis for allegedly enticing users to invest in cryptocurrencies as unregistered securities.

    After a volatile week amid the collapse of FTX, crypto prime broker Genesis announced that it would pause withdrawals from its lending arm. Genesis spent most of November raising new capital as well as convincing creditors because it was stuck with $175 million on FTX – the exchange was in the process of Chapter 11 bankruptcy.

    Parent company DCG poured $140 million to the rescue, and Binance chose to stay out of the game. Genesis Trading, which once faced hundreds of millions of dollars in losses because of its association with the hedge fund Three Arrows Capital, also defaulted.

    Genesis recently hired a corporate restructuring consultant, including a bankruptcy option. After that, DCG CEO Barry Silbert officially spoke to reassure users after Genesis’ chaotic days. He assured that the company will quickly get rid of the current crisis and will continue to be the leader of the cryptocurrency industry.

    DCG CEO Barry Silbert

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