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Crypto Genesis Seized By US Regulators

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Multiple US regulatory agencies opened investigations into FTX and other centralized exchanges following the collapse of FTX.

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Numerous US regulators launched an investigation into Genesis Global Capital, a crypto lender.

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Barron says that this investigation is part of a larger probe into the connections of cryptocurrency companies and whether these companies have violated state securities law.

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According to Joseph Borg, Director of the Alabama Securities Commission, several other states are involved in the investigation.

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The state securities regulators are looking into Genesis's connections to retail investors and whether it violated securities laws.

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Genesis suspended customer redemptions on November 16 and new loan originations for its lending business. 

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Genesis cited "abnormal withdrawal requests" following the collapse of FTX.

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Before the withdrawals were stopped, the firm had requested an emergency infusion of $1 million.

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