Genesis Trading, one of the largest OTC traders and crypto lenders for accredited investors, has received a bailout from its owner, Digital Currency Group (DCG). The cause was the default of failed crypto hedge fund Three Arrows Capital. Yesterday, Genesis CEO Michael Moro, clarified the situation after previously stating that the company had mitigated losses from a defaulting borrower.
“We worked with DCG to find the optimal strategy to further isolate the risk. DCG has assumed certain liabilities of Genesis related to this counterparty to ensure we have the capital to operate and scale our business for the long-term,” said Moro via Twitter.
It’s conceivable that one of DCG’s other subsidiaries, Grayscale, may have contributed to Three Arrows’ problems.
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