Aditya Hadi Pratama · · 1 min readCrypto lending firm faces 9-digit losses amid 3AC, Babel exposure
Crypto lending firm Genesis Trading is facing “hundreds of millions” of dollars in potential losses due to exposure to Three Arrows Capital (3AC) and Babel Finance, CoinDesk reported, citing sources familiar with the matter.
Genesis Trading CEO Michael Moro admitted that his company saw losses as “a large counterparty” failed to meet a margin call. However, he said that the lending firm has sold collateral, continues to operate normally, and is meeting all of its clients’ needs.
Founded in 2013, Genesis Trading is owned by Digital Currency Group, which is also the company behind CoinDesk. The lending firm disbursed more than US$44.3 billion in loans in the first quarter of this year.
The development comes as Singapore-based 3AC faces potential insolvency after going through major liquidations. The issue is a result of the collapse of Terraform Labs’ Luna token, as 3AC is a major backer of the Seoul-based crypto firm.
The report also follows US-based crypto broker Voyager Digital issuing a notice of default to 3AC after the hedge fund failed to make loan payments.
Meanwhile, Hong Kong-based Babel Finance said earlier this month that it has reached preliminary agreements with counterparties on the repayment of some of its debts, which led it to suspend withdrawals.
See also: First Luna, now Celsius. What’s behind the latest crypto crisis?
Editing by Miguel Cordon and Lorenzo Kyle Subido
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