Crypto market maker and lender Genesis Trading may lose “hundreds of millions” due to its exposure to troubled crypto firms Three Arrows Capital (3AC) and Hong Kong-based lender Babel Finance, CoinDesk reported.
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Fast facts
- Genesis is seeking at least partial reimbursement from its counterparties and some of the loss may have been offset, according to an anonymous source cited by CoinDesk.
- Genesis Chief Executive Officer Michael Moro tweeted on June 17 that the company has “carefully and thoughtfully mitigated losses” when a large counterparty failed to make a margin call.
- 3AC recently defaulted on a loan worth about US$665 million from Canadian cryptocurrency broker Voyager Digital, which consisted of 350 million in USDC stablecoins and 15,250 Bitcoins.
- A British Virgin Islands court ordered the liquidation of 3AC on Wednesday.
- Babel Finance announced last week that it has reached “preliminary agreements” on debt repayments to counterparties to ease the liquidity pressure, but withdrawals have been frozen for two weeks.
See related article: Voyager calls time on Three Arrows as crypto fund teeters on the brink