Bankrupt cryptocurrency-focused hedge fund Three Arrows Capital owes a whopping $2.36B to Genesis Asia Pacific, a unit of crypto lender Genesis, according to documents obtained by The Block on Monday.In the beginning of July, Genesis had disclosed exposure to Three Arrows, otherwise known as 3AC, though the exact amount was not disclosed at the time.The outstanding debt owed by 3AC to genesis is undercollateralized, the documents revealed, as reported by The Block, adding that Genesis attempted to recoup a portion of its loans by starting arbitration against 3AC through the American Arbitration Association ("AAA") in New York in June.Specifically, 3AC's collateral requirements was short by around $462M as of June 15, the documents showed. Moreover, Genesis' loans were backed by 17,443,644 shares of the Grayscale Bitcoin Trust (OTC:GBTC), 446,928 in the Grayscale Ethereum Trust (OTCQX:ETHE), 2,739,043.83 of avalanche (AVAX-USD) coins and 13,583,265 of NEAR Protocol (NEAR-USD) tokens. The arbitration proceedings, though, seem to have halted after advisory firm Teneo was appointed by a court in the British Virgin Islands to oversee the hedge fund's liquidation process, The Block noted.Overall, “both the DCG and Genesis balance sheets remain strong. With no remaining exposure to Three Arrows Capital, Genesis continues to be well-capitalized and its operations are business as usual.” a spokesperson for venture capital firm Digital ...
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