Cryptocurrency market maker and lending firm Genesis Trading is facing potential losses into the “hundreds of millions,” according to three people familiar with the matter.
The losses at Genesis relate in part to exposure to over-leveraged hedge fund Three Arrows Capital and Hong Kong-based crypto lender Babel Finance and are on the order of “a few hundred million dollars,” one of the people said.
The losses come as the collapse of Three Arrows Capital sends shockwaves across the crypto lending industry, with numerous firms facing substantial losses from their exposure to the fund.
The precise tally of Genesis’ losses may not be known for some time because the company is seeking at least partial repayment from its counterparties and some of the losses may have been offset by hedging, sources said. Amid such uncertainty, Genesis has been pulling credit lines from counterparties left and right, according to a fourth market source.
"As we already stated on June 17, we mitigated our...
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