The current cryptocurrencies crash is a curse for many crypto companies, and Genesis Trading is one of the many suffering in this bear run. In a recent Twitter thread, Genesis Trading CEO Micheal Moro confirmed that the third party they cut losses with in June is none other than Three arrows capital (3AC).
Genesis Trading’s losses stem from its exposure to Three Arrows Capital and Babel Finance. Three Arrows Capital, the over-leveraged hedge fund, is currently being liquidated by a court in the British Virgin Islands.
Moro said that after 3AC missed a margin call on funds borrowed from Genesis, the company was able to reduce its losses. He further stated that the company partnered with Digital Currency Group (DCG) to come up with an optimal strategy. DCG is the parent company of Genesis trading.
Moro states,
“DCG has taken on certain obligations from Genesis with respect to this counterparty to ensure we have the capital to operate and scale our business for the long term.”
He also said that the company is pursuing all strategies to recover the remaining loss.
Will Genesis Trading survive the winter?
Moro assures its clients that Genesis Trading will continue to support their needs as they move into the next stage of the industry’s evolution. He also says his company employs several risk management strategies to protect clients’ portfolios. He said the company is working to reduce losses quickly and effectively.
Nevertheless, this crypto winter has seen the fall of many major companies. According to reports, Genesis trading is facing losses in the hundreds of millions, meanwhile, Three Arrows Capital’s losses have run into the billions.
Also, Genesis trading has yet to reveal its full exposure to 3AC, and the team is probably waiting for the right time as the number could be high.
Similarly, Voyager Digital is another company that has suffered heavy losses as a result of its exposure to 3AC. As recently revealed, his customers may not get back everything the company owes them.