Genesis Trading at risk of nine-figure losses in 3AC contagion: report

Crypto market maker and lender Genesis Trading may lose “hundreds of millions” due to its exposure to troubled crypto firms Three Arrows Capital (3AC) and Hong Kong-based lender Babel Finance, CoinDesk reported.

Fast facts

• Genesis is seeking at least partial reimbursement from its counterparties and some of the loss may have been offset, according to an anonymous source cited by CoinDesk. 

• Genesis Chief Executive Officer Michael Moro tweeted on June 17 that the company has “carefully and thoughtfully mitigated losses” when a large counterparty failed to make a margin call.
• 3AC recently defaulted on a loan worth about US$665 million from Canadian cryptocurrency broker Voyager Digital, which consisted of 350 million in USDC stablecoins and 15,250 Bitcoins.

• A British Virgin Islands court ordered the liquidation of 3AC on Wednesday. 

• Babel Finance announced last week that it has reached “preliminary agreements” on debt repayments to counterparties to ease the liquidity pressure, but withdrawals have been frozen for two weeks.