Alabama officials open probe into crypto lender

The director of the Alabama Securities Commission said the state is part of a wide-ranging probe into the practices of crypto lending firms following the collapse of FTX, according to a report in business publication Barron’s.

The report cited Joseph Borg, director of the Alabama Securities Commission. He said the state had joined several others to examine the practices of Genesis Global Capital, a lending firm based in Connecticut that provided funds to several crypto businesses.

Borg told Barron’s that the inquiry would focus on “whether Genesis and other companies enticed residents to invest in crypto-related securities without making the proper registrations.”

Borg did not name any other companies involved in the probe. The crypto world has been in turmoil since the collapse of the exchange FTX earlier this month. Genesis halted client withdrawals more than a week ago, citing the instability in the market, Barron’s reported.