Many US state agencies are investigating multiple crypto companies: Report
Reportedly many US agencies are inquiring about the back-end information of crypto companies like Genesis, to figure out whether they violated the basic regulation policies or not.
On 25 November, Barron reported that Joseph Borg, director of the Alabama Securities Commission, said that many US state agencies along with Bahamas Securities agencies are investigating Genesis Global Trading platform & also many other crypto companies if these companies might have violated securities laws.
However investigation behind crypto companies by several agencies has been confirmed but so far no one company is known, which is under the radar of investigation, except Genesis.
The investigation will also figure out whether these crypto companies were operating their business under full compliance & with proper regulatory approval or not.
FTX Collapse & impact on other crypto companies
On 8 November, the FTX crypto exchange faced an outflow of funds from the platform because of the panic & some fake theories also. In the end, the FTX exchange found that it was not able to give withdrawal of the funds to all the users, unfortunate thanks to the past mismanagement of the user’s funds by the team.
The incident with the FTX initiated a very big level of panic among crypto investors. The majority of Crypto investors started to pool their funds from all centralized crypto platforms.
Genesis Trading was one of the struggling crypto platforms, which suspended funds withdrawal on 11 November. At that time the platform confirmed that the team suspended withdrawal services, to remain away from panic which was spreading in the crypto sector because of FTX.
A few recent reports confirmed that Genesis is actually facing a big financial challenge & may plan to raise funds to bring the operations back to line but a few other reports also confirmed that the company may plan to file for bankruptcy if nothing will go in favour of the company’s decision.
Read also: Kraken CEO criticises Binance over Proof-of-Reserve release
