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Crypto Giant Genesis Confirms Speculation of 3 Arrows Capital Exposure

Garrett Meifert

Summary: Crypto Titan Genesis’s CEO has addressed speculation that they have significant 3 Arrows Capital Exposure. In June, Michael Moro Tweeted that they had “significant” exposure to a counterparty who failed to meet a margin call. Today Moro shared that now that bankruptcy paperwork has begun, they can share that the unnamed counterparty was 3AC. Moro ...

Crypto Titan Genesis’s CEO has addressed speculation that they have significant 3 Arrows Capital Exposure. In June, Michael Moro Tweeted that they had “significant” exposure to a counterparty who failed to meet a margin call. Today Moro shared that now that bankruptcy paperwork has begun, they can share that the unnamed counterparty was 3AC.

Moro sent a chain of 8 Tweets this morning explaining the current situation with 3AC and how they plan to address it. He said, “The loans to this counterparty (3AC) had a weighted average margin requirement of over 80%. Once they were unable to meet the margin call requirements, we immediately sold collateral and hedged our downside.”

The following Tweet continued, “Since then, we worked with @DCGco to find the optimal strategy to further isolate the risk. DCG has assumed certain liabilities of Genesis related to this counterparty to ensure we have the capital to operate and scale our business for the long-term.”

DCG refers to Digital Currency Group, the parent company of Genesis and Coindesk, and investments in countless other industry players. As Moro said, DCO is stepping in to help cover some of the losses and is also “pursuing all strategies to recover any potential residual loss.”

Speculation in the comments below believes that a player as significant as Digital Currency Group should survive this upset, although the “hundreds of millions” of dollars as exposure can’t be a fun check to write.

Author: Garrett Meifert

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