Crypto Lender Genesis Lent $2.36 billion to Three Arrows Capital

Jul 19,2022
KingData News: Genesis Asia Pacific Pte Ltd, a division of the crypto lender owned by Digital Currency Group, lent $2.36 billion to collapsed hedge fund Three Arrows Capital (3AC). The company’s loans to 3AC had a weighted average margin requirement of over 80%, which 3AC had been unable to meet, prompting Genesis to sell its collateral. Documents obtained by The Block highlight the $2.36 billion outstanding loan balance owed to Genesis by 3AC. They also show that the debt is undercollateralized, and that Genesis tried to recover some of its loans by commencing arbitration proceedings against 3AC through the American Arbitration Association (AAA) in New York last month. Genesis, however, appears to have paused the arbitration process after the appointment of advisory firm Teneo to oversee 3AC’s liquidation in late June.
On June 13, Zhu Su, co-founder of Three Arrows Capital, has removed ETH, AVAX, LUNA, SOL, NEAR, MINA and other Tokens from his Twitter profile. On June 15, sources revealed that the total liquidation amount of Three Arrows Capital on Deribit, BlockFi and other lending platforms was up to $400 million. This indicator provides a real-time tracking of news reports on Three Arrows Capital's liquidity crisis.
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