Share this article
US State Regulators Investigating Crypto Trading Firm Genesis Global Capital: Barron’s
Several regulators, including the Alabama Securities Commission, are looking into whether Genesis may have violated securities laws, according to the report.
By Nelson Wang
Updated Nov 28, 2022, 4:33 p.m. Published Nov 25, 2022, 5:47 p.m.
Several U.S. state regulators are looking into whether crypto trading firm Genesis Global Capital may have violated securities laws, according to a report from Barron’s.
The report said that Alabama Securities Commission Director Joseph Borg indicated his agency and several other states are involved in the investigations. They focus on whether Genesis and other companies persuaded residents of their states to invest in crypto securities without having the proper registrations. Borg did not name the other companies being investigated.
STORY CONTINUES BELOW
Neither Genesis nor the Alabama Securities Commission responded immediately to requests for comment.
Earlier this week, Genesis confirmed it had hired an investment bank to explore its options, including bankruptcy, as it has struggled to recover from its exposure to collapsed crypto exchange FTX and before that to failed crypto hedge fund Three Arrows Capital.
Genesis had spent much of November scrambling to raise fresh capital or reach a deal with creditors. The company's institutional lending unit last week was forced to suspend redemptions and new loan originations. Genesis also previously disclosed that its derivatives unit had about $175 million in locked funds in its FTX trading account. As a result, parent company Digital Currency Group (DCG) opted to strengthen Genesis’ balance sheet with an equity infusion of $140 million.
Genesis’ parent company DCG is also the parent company of CoinDesk.
More For You
L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below.
What to know:
2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns.
This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026.
More For You
Russia’s central bank unveils new crypto rules to be adopted in 2026
Bank of Russia outlined a new framework intended to let retail and qualified investors buy crypto under defined tests and caps by 2027.
What to know:
- Russia's central bank has proposed a framework to legalize and regulate cryptocurrency trading for individuals and institutions.
- The proposal allows ordinary citizens to buy and sell cryptocurrencies through regulated platforms, with limits for nonqualified investors.
- The framework supports broader use of Russian-issued digital financial assets and permits crypto purchases abroad with mandatory tax reporting.
Top Stories
