Lending company Genesis Trading admitted it lent $3.36 billion to Three Arrows Capital, a newly bankrupt crypto investment fund.
On July 18, Teneo Restructuring, the designated liquidation unit of Three Arrows Capital (3AC), published 1,157 pages of documents submitted by creditors to claim assets from the fund. The list of 27 crypto companies/projects in this category includes Genesis Trading, Celsius, Voyager, CoinList, Galaxy Digital, SBI Crypto, BlockFi, Moonbeam,… with a total amount of “debt collection” of nearly $3.6 billion.
However, the list below lacks names that have been confirmed to be involved from 3AC but may not have yet sent documents to the liquidator, such as Blockchain.com, Deribit, DeFiance Capital , BlockFi, Babel Finance, Finblox,…
According to a creditor document sent to 3AC’s asset liquidator, Genesis Trading claims to have provided the fund with a $2.36 billion loan, but was not fully collateralized. This is much larger than the “9-digit” loss estimate given previously.
The collateral for the loan includes over 17.4 million shares of GBTC and 446,928 shares of GETH, two of Grayscale’s own crypto hedge fund products, and 2.7 million AVAX and 13.5 million NEAR. Genesis revealed that it sold all of 3AC’s collateral when the hedge fund was unable to meet margin call requirements.
It is not clear how much actual damage Genesis is suffering from the bankruptcy of Three Arrows Capital.
“Both DCG and Genesis still have plenty of assets. Genesis has no other relationship with Three Arrows Capital, the company will continue to operate stably and have abundant liquidity.”
A spokesperson representing Digital Currency Group and Genesis Trading stated
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