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Jul 7, 2022
by Jafrin Ahmed
Genesis CEO Confirms Exposure to Bankrupt Three Arrows Capital (3AC)
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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
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.
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 declared no client funds were impacted.
Earlier last week, cryptocurrency hedge fund Three Arrows Capital (3AC) filed for Chapter 15 bankruptcy in the U.S. as it looks to preserve its assets in the country after getting ordered a day prior by a court in the British Virgin Islands to liquidate.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.