(Bloomberg) -- Digital Currency Group Inc., the parent company of crypto brokerage Genesis, filed a $1.2 billion claim against Three Arrows Capital, according to people familiar with the matter who reviewed a court filing. That makes it the largest creditor of the bankrupt crypto hedge fund, the people said.
Genesis had earlier disclosed that it was exposed to Three Arrows, and a July 9 filing in Singapore high court lists a $2.36 billion loan to the fund from Genesis Asia Pacific Pte Ltd.
Genesis sold collateral and hedged its downside once Three Arrows failed to meet a margin call, Michael Moro, chief executive officer of Genesis, said in a series of tweets this month, without specifying the hedging strategy it employed. The loans to Three Arrows had a weighted-average margin requirement of over 80%, he said, without disclosing the total loan amount or the economic loss. Digital Currency Groyup (DCG) has since assumed some of these liabilities.
“Both the DCG and Genesis balance sheets remain strong. With no remaining exposure to Three Arrows Capital, Genesis continues to be well-capitalized and its operations are business as usual,” a spokesperson for DCG said in an emailed statement.
Read more: Crypto Gets a Visit From the Behemoth of Bankruptcy Law
The full extent of the impact of Three Arrows's implosion on the industry is starting to emerge as it undergoes a liquidation process ordered by a British Virgin Islands court. Celsius Network and Voyager Digital, which both filed for bankruptcy in recent weeks, are among other creditors taking a hit from Three Arrows.
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