- The financial injection, Genesis said, would allow the firm to better serve its customers.
- In July, Genesis Trading had exposure to Three Arrows Capital.
On November 10th, Genesis Trading said that its parent firm, Digital Currency Group, will inject an additional $140 million in equity funding into the business. To “strengthen its balance sheet” and “position itself as a worldwide leader in crypto capital markets,” the business said it made this choice.
The financial injection, Genesis said, would allow the firm to better serve its customers and meet “the growing demand” for its offerings. Wu Blockchain confirmed this on its Twitter page by posting a screenshot of the letter the firm had issued to its customers.
Market-making Operations Not Affected
The derivatives division of Genesis Trading disclosed on October 10 that it had around $175 million in an FTX Trading account. Genesis promised its customers that the millions of funds trapped in FTX wouldn’t affect its market-making operations, despite FTX’s liquidity crisis and recent bankruptcy filing.
Additionally, Genesis told its clientele that company did not have “an ongoing lending relationship with FTX or Alameda.” Recent market developments have taken a toll on the whole cryptocurrency sector, and several businesses are trying to distance themselves from the FTX fallout. This includes Tether, Circle, Kraken, and Coinbase, all of which have publicly claimed that they are not exposed to the struggling corporation.
In July, Genesis Trading was one of the most notable lending institutions that had exposure to Three Arrows Capital, a crypto hedge fund based in Singapore that has since gone bankrupt. After 3AC missed a margin call on funds borrowed from Genesis, former CEO Michael Moro said the company had managed to minimize damages.
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