Genesis trading announced on Nov. 10 that it will receive an additional equity infusion of $140M from its parent company, Digital Currency Group. According to the company, this decision was made to “strengthen its balance sheet” and boost its “position as a global leader in crypto capital markets”.
Genesis said it also hopes that the equity infusion will put its company in a position to support its clients and “the growing demand” for its services. This is according to a snapshot of a letter sent to their clients, as shared by Wu Blockchain on their Twitter account.
Genesis sent letters to clients stating that it had obtained an additional equity infusion of $140M from parent company, Digital Currency Group. Genesis, with $175 million locked in FTX, is also the largest creditor to Three Arrows Capital Babel Finance. pic.twitter.com/d77QCODdsf
— Wu Blockchain (@WuBlockchain) November 11, 2022
On Oct 10, Genesis trading revealed that its derivatives business had around $175 million worth of funds locked away in an FTX trading account. Although FTX is facing a “liquidity crunch” and has recently filed for bankruptcy, Genesis assured its clients that the millions of dollars locked in FTX would not impact its market-making activities.
As part of our goal in providing transparency around this week’s market events, the Genesis derivatives business currently has ~$175M in locked funds in our FTX trading account. This does not impact our market-making activities.
— Genesis (@GenesisTrading) November 10, 2022
Genesis also reassured its clients that they don’t have “an ongoing lending relationship with FTX or Alameda.” In light of recent market events which have taken a toll on the entire cryptocurrency industry, many companies are distancing themselves from the FTX fallout, including Tether, Circle, Kraken, and Coinbase, who have all openly declared that they are not exposed to the troubled firms.
Related: Genesis Trading reveals $175M of funds are locked in FTX
In July, Genesis Trading was among the prominent lending firms that had exposure to the now-liquidated Singaporean crypto hedge fund Three Arrows Capital (3AC). Back then, the former CEO Michael Moro shared that the firm had managed to mitigate losses after 3AC had failed to meet a margin call on capital borrowed from Genesis.
Title: Genesis receives additional equity infusion of $140M following recent market events
Sourced From: cointelegraph.com/news/genesis-receives-additional-equity-infusion-of-140m-following-recent-market-events
Published Date: Fri, 11 Nov 2022 22:00:14 +0000
