Three Arrows Capital owes Genesis, a cryptocurrency OTC platform, $2.36 billion.

The hedge fund Three Arrows Capital (3AC) owes Genesis, a cryptocurrency OTC platform, $2.36 billion. According to the документах, filed by the consultancy Teneo.

The documents indicate that Genesis sought to recover part of the loan by filing arbitration against 3AC in June. At the time, platform representatives said the hedge fund had breached “two loan agreements signed in January 2019 and January 2020”.

The loans were partially secured by the following assets:

According to The Block, Genesis halted the process with the American Arbitration Association after the involvement of привлечении Teneo in the hedge fund’s insolvency case became known.

In a series of tweets on July 6, Genesis Trading head Michael Moro acknowledged that in June the OTC platform liquidated positions of Three Arrows Capital.

He also added that the parent company Digital Currency Group (DCG) has assumed certain obligations to Genesis to ensure capital for the ‘management and scaling’ of its business in the future.

One source said that, as a result, DCG bears potential losses tied to 3AC’s debt.

Earlier, describing themselves as a creditor of the liquidated hedge fund user DrSoldmanGachs disclosed the total amount of outstanding obligations by Three Arrows Capital — $2.8 billion.

Among the creditors he named one of 3AC’s founders Su Zhu, DCG and others.

In the piece, the liquidators of Three Arrows Capital are trying to провести расследование and preserve the Singapore-based assets of the crypto hedge fund, according to the media.

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