Sunday, November 27, 2022 9:00 AM ▪
4
Accurate reading – by
Cryptocurrency lender Genesis Glabal Capital may be concerned, as the news is not good at the moment. In fact, US regulators were going to launch investigations against the platform. This action is part of a comprehensive investigation into the independence of crypto platforms. It’s about checking the bond Genesis has with retail investors. Regulators want to ensure that Genesis’s sovereign activities do not violate laws relating to real estate values.
Did Genesis Violate Securities Laws?
Since November 25, Real estate regulators in the United States They work hard. They want to purify the bad seed sector to avoid a similar downfall FTX. Their last goal is nothing but origin, a crypto lender. Admittedly, the platform is not known for serving individual investors directly, but rather it works through a broker company. For example, she used to support the products promoted by the company Internet Finance Departmentone of the main operators of USDC. What you need to know is that Genesis-powered products make a profit for investors who choose to deposit certain cryptocurrencies on the platform.
over here Alabama Real Estate Securities Commission Who oversees the ongoing investigations. At the end of this investigation, the Foundation must determine whether Genesis Global Capital and other crypto players have violated the regulations. For the time being, the first developments are confidential and the Control Foundation did not want to make any comment, itself being from Genesis.
Let’s remember that after the collapse of FTX, something strange happened to Genesis. The platform immediately suspended everything repurchase transactions Investors are tempted. The platform was going to block the transactions because it deemed them abnormal. Moreover, the The required withdrawals were in excess of liquidity.
According to information provided by our colleagues from The New York Times Earlier this week, it was possible to recruit Genesis Mullis and Co. This investment bank will play the role of advisor to restructure the company.
conclusion
Ultimately it must be said that the bankruptcy of FTX forces companies to be careful and in the worst case to prepare for a possible bankruptcy to better predict. Consequences of a corporate disaster Sam Bankman Fried increasingly heavy. Some companies face exposure running into the millions.
Get a summary of the news in the cryptocurrency world by subscribing to our new service Daily and weekly so you don’t miss any of the essential Cointribune!
A PhD student in financial law and an experienced SEO web editor, Cédrick Aimé is passionate about cryptocurrency, trading, etc. He naturally participates thanks to his articles in the daily blockchain revolution in order to better democratize DeFi.