Sunday, June 23, 2024

Genesis Trading confirms exposure to 3AC, and the parent business helps stop losses.

Genesis Trading is yet another company whose investments were exposed to Three Arrows Capital, since liquidated. 3AC’s insolvent status and order for liquidation has shocked and shaken many in the crypto arena over the last week. This has not helped especially with the downturn in markets. Many have been speculating which companies were exposed to the hedge fund which is now defunct.

Genesis Trading is one of many prominent lenders which dealt with 3AC, and this information was confirmed by Michael Moro, its CEO. He said that his company had managed to stem losses arising from 3AC’s failure to meet a call on capital borrowed from them. The loan amount to 3AC was not revealed as part of the statement. Mr. Moro said that they sold the collateral pledged to them by Three Arrows and managed to hedge their losses.

Digital Currency Group, Genesis’ parent company took on part of the liability to defray costs. Thanks to this act, Genesis Trading has enough capital to keep operating. Genesis is still looking at ways on how it can recoup the money lost due to 3AC’s collapse.

According to reports, Genesis is looking at losses in many millions. Details on the exact amount owed and extent of exposure have yet to be revealed. Voyager Digital is another company impacted by Three Arrows collapse. Voyager had to put off trading, withdrawal and deposit activities for a while at the beginning of July. 3AC owed Voyager 15,250 in BTC payments and about $350 million in loans.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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