The head of the OTC platform Genesis Trading announced the elimination of the position of the “large counterparty”
Michael Moro, CEO of the CRIP PLA of the Genesis Trading OTC platform, announced the elimination of the position of the “large counterparty”. He did not say the name of the company, but users suggested that it is a hedge fund Three Arrows Capital (3ac).
“Genesis can confirm that we carefully and thoughtfully reduced our losses with a large counterparty, which did not fulfill marginal requirements […]. Customer funds were not injured, ”Moro emphasized.
Twitter users have admitted that the head of Genesis Trading meant Three Arrows Capital.
I Was Trying to Guess who This Counterparty Was the I Remember that I Had 3 Acs Needing Repair Recently, Despite of Their “Genius” Manuapacturer
– Cyberalien.ETH (@CYBERALIEN_ITH) June https://gagarin.news/ 17, 2022
One of the commentators compared the freedom of Moro with the statement of the head of Blockfi Zak Prince.
Earlier, the prince said that recently the cryptoland platform “made its best business decision regarding a large client who could not fulfill the marginal loan obligations with excessive security”. According to Financial Times, a part of 3C positions was eliminated.
According to Moro, Genesis Trading plans to “actively achieve compensation for any potential residual losses by all available funds”.
In February 2022, Three Arrows Capital headed the LFG LNA tokens for $ 1 billion. In May, the Terra ecosystem collapsed, and its native cryptocurrency has practically depreciated.
In June, against the backdrop of the collapse of the cryptocurrency market, rumors appeared about the insolvency of the hedge fund, which actively used protocols like AAVE.
On June 16, the 8 Blocks Capital trading company accused Three Arrows Capital of the use of clients for covering marin-collars.
According to some reports, the cryptocurrency platforms of BitMex, FTX and Deribit eliminated 3AC positions due to the inability of the latter to fulfill marginal requirements.
On June 17, the co-founder of the hedge fund Kyle Davis said that Three Arrows Capital hired legal and financial consultants to develop a decision for its investors and creditors. According to him, the structure did not stop operating activities.
About how the Celsius, 3ac and Steth are connected, as well as the influence of their potential bankruptcy on the market, read in the Exclusive FORKLOG:
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