Hedge fund Three Arrows Capital (3AC) owes $2.36 billion to crypto OTC platform Genesis, according to documents submitted by consulting firm Teneo.

They state that Genesis sought to recover some of the loan by initiating arbitration proceedings against 3AC in June. Then, platform representatives said the hedge fund violated “two loan agreements signed in January 2019 and January 2020.”

According to the documents, the loans were partially secured by the following assets:

According to The Block, Genesis suspended AAA’s lawsuit after learning that Teneo’s hedge fund was involved in the bankruptcy case.

In a series of tweets on July 6, Genesis Trading CEO Michael Moreau acknowledged that the OTC platform liquidated the positions of Three Arrows Capital in June.

He added that at the time, parent company Digital Currency Group (DCG) made specific commitments to Genesis to ensure that capital is available to “manage and scale” its business in the future.

One of the sources for the publication therefore stated that the potential losses on 3AC’s debt are DCG.

User DrSoldmanGachs, who identified himself as the creditor of the previously liquidated hedge fund, disclosed Three Arrows Capital’s total outstanding liabilities – $2.8 billion.

Among the creditors, he chose one of the founders of 3AC, Su Zhu, DCG and others.

As a reminder, according to the media, Three Arrows Capital liquidators are trying to investigate and recover the cryptocurrency hedge fund’s Singapore assets.

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