Genesis Gave Nearly $2.50 Billion Loans To Three Arrows Capital

After revealing that Genesis liquidated positions in Three Arrows Capital (3AC) earlier, the exact amount of loss is now revealed. Crypto lender Genesis is said to have lent Three Arrows Capital a loan worth $2.36 billion, according to a filings document. Genesis CEO Michael Moro had earlier this month clarified on the details of the exposure to 3AC. He said once 3AC failed to meet margin call requirements, Genesis sold the collateral.

Genesis’ Handling Of Losses

The document noted that the undercollateralized loan was secured by around 17.4 million shares of $GBTC, 446k shares of $ETHE, 2.7 million $AVAX and 13.50 million $NEAR. In total, Three Arrows owes around $3.50 billion to as many as 27 companies.

“We immediately sold collateral and hedged our downside,” she said in a series of tweets on July 6. Last month, the company management did not reveal 3AC’s identity when it said it liquidated a ‘large counterparty’. At the time, Moro said none of the client funds were impacted and that trading was going on normally.

In his closing remarks, the Genesis CEO gave an optimistic view of the future amid market volatility. “Looking ahead, we will continue to support the needs of our clients and counterparties,” he added.

“Genesis has a range of business lines including trading, lending, derivatives, and custody services. We deploy a number of risk management strategies to ring-fence our portfolio and utilize all capabilities to mitigate losses quickly and effectively.”

Many Firms Liquidated 3AC

So far, many crypto firms have already liquidated Three Arrows Capital after it failed to meet margin call requirements. FTX, BlockFi, Deribit and BitMEX are some of those companies which liquidated their assets. Meanwhile, several companies that are caught in the vicious web of crypto lending are trying to sort out their future plans out of crisis.

On July 13, crypto lender Celsius filed for bankruptcy. Last month, the company stopped withdrawals and transfers from user accounts. On Monday, Celsius revealed its financial overview and restructuring plans in court, in the bankruptcy proceedings. The lender has $5.5 billion in liabilities and around $4.3 billion worth of assets.

Anvesh reports major developments around crypto adoption and price analysis. Having been associated with the industry since 2016, Anvesh is a strong advocate of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

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