Several US regulators have started an investigation about the possible violation of the law by struggling crypto lender Genesis Global Capital.

According to the director of the Alabama Securities Commission, Joseph Borg, the investigation is focused on several companies.

State regulators will scrutinize Genesis Global Capital and other firms to encourage citizens to invest in crypto-related securities without proper registration.

Borg has not disclosed any details about the other participants in the investigation.

Genesis has previously frozen withdrawals and new loans, citing “increased demand” from customers following the collapse of crypto exchange FTX. According to NYT sources, the company did not rule out the option of bankruptcy.