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Genesis Trading Mitigated Losses With a 'Large Counterparty,' CEO Says
Genesis’ update comes after crypto fund Three Arrows Capital confirmed heavy losses during the market rout.
Updated May 11, 2023, 5:44 p.m. Published Jun 17, 2022, 4:18 p.m.
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Genesis Trading “carefully and thoughtfully mitigated our losses with a large counterparty who failed to meet a margin call to us earlier this week,” CEO Michael Moro said in a series of tweets Friday.
- Moro added that no client funds are impacted, and that Genesis sold and/or hedged all of the liquid collateral on hand to minimize any downside.
- Genesis’ update comes after beleaguered cryptocurrency fund Three Arrows Capital (3AC) confirmed Friday it had suffered heavy losses in the recent market downturn and said it had hired legal and financial advisors to figure a way out, according to a WSJ report.
- Meanwhile, various digital asset firms continue to weigh in on their exposure. Crypto lender BlockFi confirmed Thursday it recently liquidated a “large client” amid reports that Three Arrows Capital failed to meet margin calls.
- Genesis Trading’s CEO added that the company “will actively pursue recovery on any potential residual loss through all means available, however our potential loss is finite and can be netted against our own balance sheet as an organization. We have shed the risk and moved on.”
- Moro said Genesis continues to operate 24/7 and contains "incredible" access to capital.
- Genesis is a subsidiary of Digital Currency Group, which owns CoinDesk.
Read more: Babel Finance Suspends Withdrawals, Citing 'Unusual Liquidity Pressures'
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