Genesis Trading confirms liquidation of Three Arrows Capital positions

Genesis Trading CEO Michael Moro acknowledged that in June the cryptocurrency OTC platform liquidated the positions of hedge fund Three Arrows Capital (3AC).

2/ We previously stated in June that we mitigated our losses with respect to a large counterparty who failed to meet a margin call. Now that the BVI bankruptcy process has commenced, we can confirm that the counterparty was Three Arrows Capital.

— Michael Moro (@michaelmoro) July 6, 2022

Earlier he не назвал «крупного контрагента». Now he has decided on this after the initiation процедуры банкротства 3AC.

The executive explained that the platform promptly disposed of the collateral that the hedge fund used to obtain the loan. This occurred after the value fell below the maintenance margin, which averaged more than 80%.

«Since then we, with the parent company DCG, have been seeking an optimal strategy for further risk isolation. The company has borne a portion of Genesis’s losses related to 3AC to ensure sufficient capital to run and grow our business in the long term», — пояснил он.

As reported, information about the insolvency of 3AC appeared amid the crypto market downturn and the Terra crash.

Later, trading firm 8 Blocks Capital accused the hedge fund of using client funds to cover margin calls.

According to some reports, due to the latter’s failure to meet the margin requirements for 3AC liquidated positions, cryptocurrency platforms BitMEX, FTX and Deribit also liquidated.

Read ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analytics.