Genesis Trading Confirms “Large Counterparty” Liquidation Amid 3AC Crisis

Key Takeaways

  • Genesis Trading CEO Michael Moro has confirmed that the firm liquidated “a large counterparty” this week.
  • Though he didn’t name the counterparty, he was likely referring to the troubled crypto hedge fund Three Arrows Capital.
  • It emerged this week that Three Arrows is facing major liquidity issues due to the decline in the crypto market.

Share this article

The update comes as the celebrated crypto hedge fund Three Arrows Capital faces its biggest liquidity crisis to date. 

Genesis Trading Says It Liquidated Counterparty

Genesis Trading has confirmed that it liquidated “a large counterparty” this week, in what was surely a reference to the ongoing crisis surrounding the crypto-focused hedge fund Three Arrows Capital. 

The institutional trading firm’s CEO Michael Moro posted a tweet storm Friday, saying that Genesis prioritizes risk management and aims to provide transparency during heated market conditions. “Genesis can confirm that we carefully and thoughtfully mitigated our losses with a large counterparty who failed to meet a margin call to us earlier this week,” he wrote. “No client funds are impacted. We sold and/or hedged all of the liquid collateral on hand to minimize any downside.” 

Moro added that the firm would always “actively pursue recovery on any potential residual loss through all means available” and continues to fulfil all client requests. “Genesis will be around for the long term and we are committed to driving this industry forward,” he assured. 

Though Moro did not explicitly mention the counterparty affected by the margin call, he was more than likely referring to Three Arrows, the troubled trading firm co-run…


Leave a Reply

Your email address will not be published.