The popular Institutional trading firm Genesis Trading confirms that it liquidated “a large counterparty” this week, presumably in reference to the crisis happening at crypto hedge fund Three Arrows Capital.
Michael Moro, the CEO of Genesis Trading, stated “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.”
Moro tweeted that Genesis prioritizes risk management and aims to provide transparency during volatile market conditions.
According to Moro, Genesis Trading’s risk management practices, exceptional track record, and strong balance sheet have not been impacted and the company is operating as usual.
To avoid further losses in the face of extreme market conditions, the company has sold or hedged all of the liquid collateral.
Moreover, Genesis Trading’s CEO Michael Moro claims that the company will support its clients in the face of rising crypto market volatility and speculation.
Reportedly the company’s client funds are not affected amidst the current market catastrophe.
Three Arrows Capital is being liquidated by multiple firms after it failed to meet margin calls. BlockFi, FTX, Deribit, and BitMEX are among the crypto hedge funds that have liquidated their positions. There are also reports that several Asian lenders have sold their holdings in Three Arrows Capital.
Meanwhile, as it faces insolvency, Three Arrows Capital is liquidating its stETH and ETH holdings to repay loans. As a result of the market-wide sell off in digital assets, the company has hired legal and financial advisors to help it find a solution.