Crypto lender Genesis Trading has been financially exposed to Three Arrows Capital (3AC), but managed to mitigate its losses, the firm's head Michael Moro tweeted.
In a series of tweets, Moro said that the loans to 3AC had a "weighted average margin requirement of over 80%." He added:
"Once they were unable to meet the margin call requirements, we immediately sold collateral and hedged our downside."
Moro reassured that the firm is working on "all strategies to recover any potential residual loss." The firm's parent company Digital Currency Group has also assumed some of its liabilities, he admitted. However, Moro declined to provide any numbers.
The statements come after reports said Genesis was facing "hundreds of millions" in potential losses from exposure to 3AC and other counterparties.
