Genesis Confirms Exposure to Three Arrows Capital

Digital Currency Group, the crypto conglomerate that owns Genesis, is assuming some of the liabilities.

AccessTimeIconJul 6, 2022 at 6:14 p.m. UTC
Updated May 11, 2023 at 5:44 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Genesis Global Trading CEO Michael Moro on Wednesday said Three Arrows Capital was the large counterparty that failed to meet a large margin call in June, forcing liquidation of the related collateral.

  • Since then, said Moro in a series of tweets, Genesis has worked with its parent company, Digital Currency Group, to continue to isolate risk, with DCG assuming certain liabilities of Genesis related to Three Arrows Capital, a crypto hedge fund that has been ordered by British Virgin Islands court to liquidate. DCG also owns CoinDesk.
  • Last week, CoinDesk reported that Genesis was facing hundreds of millions of dollars in losses due in part to its exposure to Three Arrows Capital and also noted the deep pockets of DCG was likely to help ease the blow.
  • Moro said Wednesday the loans to Three Arrows Capital, which is also known as 3AC, had a weighted average margin requirement of 80%. Once that level was breached and no additional margin was posted, Genesis sold the collateral and hedged further downside.
  • What's Stopping Congress From Passing Crypto Regulation?
    00:56
    What's Stopping Congress From Passing Crypto Regulation?
  • Sen. Lummis Addresses Algorithmic Stablecoin Ban in New Bill
    19:02
    Sen. Lummis Addresses Algorithmic Stablecoin Ban in New Bill
  • Why Bitcoin May Fall to $52K
    14:59
    Why Bitcoin May Fall to $52K
  • JPMorgan Expects Bitcoin to Drop After Halving; New Zealand Starts Digital Cash Consultation
    02:15
    JPMorgan Expects Bitcoin to Drop After Halving; New Zealand Starts Digital Cash Consultation

  • Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Stephen  Alpher

    Stephen Alpher is CoinDesk's managing editor for Markets. He holds BTC above CoinDesk’s disclosure threshold of $1,000.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.