Crypto exchange Genesis discloses exposure to bankrupt Three Arrows Capital

DIGITAL asset exchange Genesis Trading said on Wednesday (Jul 6) it had been exposed to Three Arrows Capital (3AC), but had mitigated its losses after the bankrupt crypto hedge fund failed to meet a margin call.

Genesis chief executive officer Michael Moro in a tweet said the firm’s parent company Digital Currency Group has assumed some of its liabilities.

Genesis is also pursuing all strategies to recover any potential loss, he added.

The loans to Three Arrows had a weighted average margin requirement of over 80 per cent, Moro said.

The disclosure comes weeks after Moro said Genesis had mitigated its losses with a “large counterparty” that had failed to meet a margin call.

Aggressive rate hikes by the US Federal Reserve and recession fears have led to a turmoil in equities and sparked a sell-off in crytocurrencies. The crypto winter has also hurt other major players like Coinbase Global, which last month said it would cut about 18 per cent of its workforce. REUTERS