Cryptocurrency lender and broker Genesis Trading confirmed that it had exposure to the recently bankrupt Three Arrows Capital (3AC) but had mitigated its losses after the bankrupt crypto hedge fund failed to meet a margin call. Genesis Confirms Risks Exposure to 3AC In a Twitter thread, CEO Michael Moro stated that Genesis sold collateral and hedged its downside once Three Arrows failed to meet a margin call. The loans to Three Arrows had a weighted average margin requirement of over 80%, he said, without disclosing the total loan amount. The lender’s parent company, Digital Currency Group, has now assumed some of Genesis’ liabilities related to 3AC and is pursuing other strategies to recover any extra losses, he said. 4/ Since then, we worked with @DCGco to find the optimal strategy to further isolate the risk. DCG has assumed certain liabilities of Genesis related to this counterparty to ensure we have the capital to operate and scale our business for the long-term. — Michael Moro (@michaelmoro) July 6, 2022 Genesis has previously acknowledged taking a hit in the bear market without giving any numbers. “Looking ahead, we will continue to support the needs of our clients and counterparties as we enter the next phase of the industry’s evolution,” he wrote in his tweet. The announcement comes just three weeks after the CEO revealed that Genesis mitigated losses with a “large counterparty” that failed to meet a margin call. He d...
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