Genesis Trading CEO Michael Moreau admitted that the cryptocurrency OTC platform liquidated the hedge fund's positions in JuneThree Arrows Capital (3AC).
Previously, he did not name a "major counterparty." Now he decided on this after the start of bankruptcy proceedings for 3AC.
The top manager explained that the platform would immediatelygot rid of the collateral that the hedge fund used to obtain the loan. This came after the price declined below the maintenance margin, which averaged over 80%.
“Since then [parent] DCG and I have been looking foroptimal strategy for further risk isolation. The company assumed a certain portion of Genesis' losses related to 3AC in order to provide sufficient capital to maintain and expand our business in the long term."- he explained.
Recall that information about the insolvency of 3AC appeared against the background of the collapse of the cryptocurrency market and the collapse of Terra.
Trading company 8 Blocks Capital later accused the hedge fund of using client funds to cover margin calls.
According to some reports, due to the inability of the latter to meet the margin requirements of 3AC positions, the cryptocurrency platforms BitMEX, FTX and Deribit were also liquidated.
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