Genesis Trading CEO Confirms Exposure to 3AC, Parent Company Helps Cover Losses

Genesis Trading Continues After Confirming 3AC Exposure, While Parent Company Digital Currency Group Takes Some Responsibility After Losses .

Digital Currency Group's market maker and lending company, Genesis Trading, has confirmed that it has investment exposure in the now liquidated company Three Arrows Capital (3AC).

The beleaguered company's insolvency and subsequent liquidation order sent shockwaves through the cryptocurrency space last week amid an ongoing downturn in crypto markets. A major topic of discussion was the involvement of other top companies in the now-defunct cryptocurrency hedge fund and the ongoing fallout.

Genesis Trading is among the top lending companies that have been exposed to 3AC, which has now been confirmed by CEO Michael Moro. The company's chief said the company managed to mitigate losses after 3AC failed to meet a margin call on capital borrowed from Genesis.

1/ As part of our goal of market transparency, I wanted to share the latest update on @GenesisTrading.

While Moro refrained from revealing the amount he lent to 3AC, he disclosed the terms of the company's loan to the hedge fund and the chain of events that followed after the debtor n 'failed to meet its repayment obligations:

"The loans to this counterparty had a weighted average margin requirement of over 80%. Once they were unable to meet the margin call requirements, we immediately sold collateral and covered our decline."

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