Genesis Global Trading – a crypto prime brokerage firm – reportedly credited the now insolvent Three Arrows Capital (3AC) with $2.36 billion in under collateralized loans.

  • As reported by The Block, details on 3AC’s loans were gleaned from a 1,159-page document uploaded by the advisory firm Teneo on Monday.
  • The filing reportedly shows that Genesis tried to recover some of its losses using arbitration proceedings against 3AC last month.
  • However, the arbitration proceeding was paused after Genesis recruited Teneo to assist with 3AC’s liquidation in late June.
  • The document also showed some details regarding 3AC’s collateral. It included 17,443,644 shares of Grayscale’s Bitcoin Trust, 446,928 shares of Grayscale’s Ethereum Trust, 2,739,043.83 AVAX, and 13,583,265, NEAR.
  • As of June 15th, 3AC was short $462 million on its collateral requirements.
  • Genesis CEO Michael Moro confirmed in June that the firm had mitigated its losses with “a large counterparty who failed to meet a margin call” However, neither the name of the counterparty nor the exact figure for its losses were given.
  • Later, Moro confirmed that the counterparty was 3AC and that its loans to the fund had a weighted average margin requirement of 80%.
  • “Once they were unable to meet the margin call requirements, we immediately sold collateral and hedged our downside,” he said at the time.
  • Furthermore, Genesis’s parent company Digital Currency Group (DCG) assumed some of Genesis’s liabilities to help it continue to operate.
  • As of Monday, Genesis’s parent company Digital Currency Group filed a $1.2 billion liquidation request against 3AC.
  • 3AC filed for bankruptcy at the start of July.

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