The report indicated that the Alabama Securities Commission is investigating whether Genesis and other companies persuaded residents to invest in crypto securities without the proper registrations. Director Joseph Borg said that several states are taking part in the investigations. Borg refused to name the other companies under investigation.
Neither Genesis nor the Alabama Securities Commission responded immediately to requests for comment.
Earlier this week, GGP announced that it had hired an investment bank to help it explore its options, including the possibility of filing for bankruptcy. This is because the company has struggled to recover from its exposure to the collapsed crypto exchange FTX and, before that, to the failed crypto hedge fund Three Arrows Capital.
Genesis has been busy trying to get money from investors or working out payment plans with creditors. The company had to stop people from taking their money out and making new loans last week. GGP revealed that its derivatives trading unit had around $175 million in locked funds in its FTX trading account. This means that the funds are not accessible to be used or withdrawn. As a result of the recent changes, the company that owns Genesis (DCG) has decided to give GGP a cash infusion of $140 million.
