I’ll probably write in more detail this coming week, but Genesis was the largest prime broker in crypto. It provided liquidity, credit, and important financial infrastructure to other members of the DGC group, including they Greyscale Bitcoin Trust. This made it one of the most systemically important institutions in crypto.
If you do not care about crypto, obviously, not terribly relevant. If one does, the degree of rot and malfeasance in systemically important institutions, and the many billions of dollars lost, and the likelihood that not mere fecklessness but actual crimes underlie many of the losses, are fairly important. (FTX was a large scale misappropriation of customer funds. Genesis, among many other crypto lenders, is currently under investigation for unregistered securities offerings, essentially on the theory that they sold a product which masqueraded as a bank deposit but was actually a structured product which blew up in a fairly predictable way. We have laws which prohibit doing that.)
> the degree of rot and malfeasance in systemically important institutions
These "systemically important institutions", as you label them, are peopled by feckless children. My small-town sanitation department presents itself with greater systemic institutional integrity.
The older I get, the more I respect sanitation departments, local DOTs, sewer/water authorities, and generally the quiet people who make modern life possible. They deserve a LOT more than these crypto scammers.
If you do not care about crypto, obviously, not terribly relevant. If one does, the degree of rot and malfeasance in systemically important institutions, and the many billions of dollars lost, and the likelihood that not mere fecklessness but actual crimes underlie many of the losses, are fairly important. (FTX was a large scale misappropriation of customer funds. Genesis, among many other crypto lenders, is currently under investigation for unregistered securities offerings, essentially on the theory that they sold a product which masqueraded as a bank deposit but was actually a structured product which blew up in a fairly predictable way. We have laws which prohibit doing that.)