Genesis Trading CEO confirms 3AC exposure, parent company helps plug losses

cointelegraph.com:

Digital Currency Group’s market maker and lending firm Genesis Trading has confirmed that it had investment exposure in the now-liquidated Three Arrows Capital (3AC).

The insolvency and subsequent liquidation order of the embattled company sent shockwaves through the cryptocurrency space last week amid an ongoing downturn across crypto markets. A major talking point was the stake other prominent companies had in the now-defunct cryptocurrency hedge fund and the ongoing fallout.

Genesis Trading is among prominent lending firms that had exposure to 3AC, which has now been confirmed by CEO Michael Moro. The company’s chief said the firm had managed to mitigate losses after 3AC had failed to meet a margin call on capital borrowed from Genesis.

1/ As part of our goal in providing transparency to the market, I wanted to share the latest update at @GenesisTrading.

While Moro stopped short of revealing how much it had lent to 3AC, he unpacked the terms of the firm’s loan to the hedge fund and the subsequent chain of events after the debtor failed to meet its repayment obligations:

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Genesis Trading's parent company Digital Currency Group has assumed some of the liability owed by 3AC in order to ensure Genesis has adequate capital to continue its operations. The firm will continue to explore options to try and recoup losses in the wake of 3AC’s collapse.

Reports suggest that Genesis is facing losses in the hundreds of millions of dollars while the company is yet to disclose the details of its exposure to 3AC. Cointelegraph has reached out to the market maker for comment.

Voyager Digital was another casualty of 3AC’s collapse as the cryptocurrency exchange was forced to