There’s a lot that has been happening in the crypto-verse. The last couple of months has been a nightmare for many. Bankrupt firms and missing founders have instilled fear among several investors. The streak started by Three Arrows Capital [3AC] seemed to be still on. Following immense exposure from the downfall of FTX, Genesis Global Trading decided to halt withdrawals. Recent reports suggest that bankruptcy was in the cards for the platform.
Amidst this, it should be noted that Genesis had been impacted by the downfall of Three Arrows Capital as well. Back in July, it was brought to light that Genesis had lent about $2.36 billion to 3AC.
Previously, documents show that 3AC owes Genesis a loan debt of $2.36 billion. Additionally, they demonstrate how inadequately collateralized the debt is and how Genesis attempted to collect part of its loans by starting arbitration procedures against 3AC in June through the American Arbitration Association [AAA] in New York. However, the firm went on to pause the arbitration process.
In addition to this, Genesis noted how 3AC had breached two lending agreements. This was signed back in January 2019 and 2020.
After maintaining a low profile for quite some time, Kyle Davis, the founder of 3AC spoke up about the FTX collapse. He went on to say that “FTX/Alameda hunted our positions.” The crypto lender lost all its money becoming the “largest $ losers,” he added.
Will Genesis survive the crypto winter?
Just last week, Genesis assured that it had hired the best advisors in the industry to look into several options. However now, the firm was seeking funds from platforms like Binance and Apollo Global Management. While Binance did not get on board, the platform could be headed toward bankruptcy.
Amidst all of this, Bitcoin was certainly feeling the heat. The asset, at press time, was trading for a low of $15,857.