Genesis Trading CEO Michael Moreau acknowledged that the cryptocurrency OTC platform liquidated positions at hedge fund Three Arrows Capital (3AC) in June.

2/ Earlier in June, we stated that we reduced our losses related to a large counterparty that did not comply with the margin call. Now that the BVI bankruptcy process has begun, we can confirm that the counterparty is Three Arrows Capital.

— Michael Moro (@michaelmoro) 6 July 2022

Previously, he did not call it “a major counterparty”. Now he has decided this after the bankruptcy proceedings for 3AC began.

The senior executive explained that the platform immediately got rid of the collateral the hedge fund used to get the loan. This came after the price fell below the maintenance margin, which averaged over 80%.

“Since then we [материнская] DCG explored the most appropriate strategy to further isolate risk. The company has assumed a certain portion of Genesis’ 3AC-related losses to secure sufficient capital to sustain and expand our business over the long term.”explained.

Recall that the information about the bankruptcy of 3AC appeared against the background of the collapse of the cryptocurrency market and the collapse of Terra.

Trading firm 8 Blocks Capital later accused the hedge fund of using client funds to cover margin calls.

According to some reports, BitMEX, FTX and Deribit cryptocurrency platforms were also liquidated due to the latter’s failure to meet the margin requirements of 3AC positions.

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