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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 \u201cstrengthen its balance sheet\u201d and boost its \u201cposition as a global leader in crypto capital markets\u201d.\u00a0<\/p>\n
Genesis said it also hopes that the equity infusion will put its company in a position to support its clients and \u201cthe growing demand\u201d 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. <\/p>\n
\nGenesis 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<\/a><\/p>\n
\u2014 Wu Blockchain (@WuBlockchain) November 11, 2022<\/a><\/p><\/blockquote>\n
On Oct 10, Genesis trading revealed that its derivatives business had around $175 million worth of funds locked away<\/a> in an FTX trading account. Although FTX is facing a \u201cliquidity crunch\u201d and has recently filed for bankruptcy<\/a>, Genesis assured its clients that the millions of dollars locked in FTX would not impact its market-making activities. <\/p>\n
\nAs part of our goal in providing transparency around this week\u2019s 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.<\/p>\n
\u2014 Genesis (@GenesisTrading) November 10, 2022<\/a><\/p><\/blockquote>\n
Genesis also reassured its clients that they don\u2019t have \u201can ongoing lending relationship with FTX or Alameda.\u201d In light of recent market events <\/a>which have taken a toll on the entire cryptocurrency industry, many companies are distancing themselves from the FTX fallout, including Tether<\/a>, Circle, Kraken<\/a>, and Coinbase<\/a>, who have all openly declared that they are not exposed to the troubled firms<\/a>. <\/p>\n
Related: Genesis Trading reveals $175M of funds are locked in FTX <\/em><\/strong><\/a><\/p>\n
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)<\/a>. 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.<\/p>\n<\/div>\n