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Cryptocurrency market Maker and lender Genesis faces losses of hundreds of millions. These losses may be partly due to exposure to three arrows capital and Babel Finance , both of which have been hit by excessive leverage.
The losses came from the collapse of Three Arrows Capital that shocked the cryptocurrency industry. There are many companies that suffer heavy losses when shaking hands with the fund.
of debts.
According to some sources, it is not possible to determine the exact loss of Genesis because the company is still looking to partially repay the debt to its partners and there are losses that are offset by hedging. In this context, Genensis has taken action to shorten credit lines from partners.
Michael Moro, CEO of Genesis , said: "As stated on June 17, we have minimized our harm to a partner, as they have refused to respond to our margin call. We had to sell the collateral, the types of hedging and return to normal business. We are still trying to meet all the needs of our customers."
3/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. No client funds are impacted. We sold and/or hedged all of the liquid collateral on hand to minimize any downside.
— Michael Moro (@michaelmoro) June 17, 2022
Babel Finance and Three Arrows Capital did not immediately respond to requests for comment.
There have been many liquidation accounts appearing at various cryptocurrency trading and lending platforms. This has led to the unraveling of typical cryptocurrency companies such as Terraform Labs, Celsius and Three Arrows Capital, which have been supported by the decline in the value of cryptocurrencies.
Three Arrows Capital has had a wide-ranging impact that can be clearly seen. For example, cryptocurrency brokerage Voyager saw its stock plunge and was forced to make the decision to limit withdrawals. The company claims the hedge fund is unable to handle loans in the $670 million range.
In the first quarter of 2022, Genesis had $44.3 billion in loans. The parent company is DCG – a large cryptocurrency corporation with a vault of about $1 billion. This is a possibility that could help Genesis take a stepping stone of that kind of shock.
Bitcoin's price is likely to rise thanks to the forced write-off of the average debt on the cryptocurrency's mayor. In recent days, the BTC cryptocurrency is trading at around $20,000.
>> See also: The easiest Coin Ex Registration Guide to understand
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