Genesis receives additional equity infusion of $140M following recent market events

Genesis buying and selling introduced on Nov. 10 that it’ll obtain an extra fairness infusion of $140M from its guardian firm, Digital Foreign money Group. In accordance with the corporate, this choice was made to “strengthen its stability sheet” and increase its “place as a world chief in crypto capital markets”. 

Genesis stated it additionally hopes that the fairness infusion will put its firm ready to help its purchasers and “the rising demand” for its companies. That is in accordance with a snapshot of a letter despatched to their purchasers, as shared by Wu Blockchain on their Twitter account.

Genesis despatched letters to purchasers stating that it had obtained an extra fairness infusion of $140M from guardian firm, Digital Foreign money Group. Genesis, with $175 million locked in FTX, can be the most important creditor to Three Arrows Capital Babel Finance. pic.twitter.com/d77QCODdsf

— Wu Blockchain (@WuBlockchain) November 11, 2022

On Oct 10, Genesis buying and selling revealed that its derivatives enterprise had round $175 million worth of funds locked away in an FTX buying and selling account. Though FTX is dealing with a “liquidity crunch” and has just lately filed for bankruptcy, Genesis assured its purchasers that the hundreds of thousands of {dollars} locked in FTX wouldn’t influence its market-making actions.

As a part of our objective in offering transparency round this week’s market occasions, the Genesis derivatives enterprise at present has ~$175M in locked funds in our FTX buying and selling account. This doesn’t influence our market-making actions.

— Genesis (@GenesisTrading) November 10, 2022

Genesis additionally reassured its purchasers that they don’t have “an ongoing lending relationship with FTX or Alameda.” In gentle of recent market events which have taken a toll on all the cryptocurrency business, many firms are distancing themselves from the FTX fallout, together with Tether, Circle, Kraken, and Coinbase, who’ve all overtly declared that they’re not exposed to the troubled firms.

Related: Genesis Trading reveals $175M of funds are locked in FTX

In July, Genesis Buying and selling was among the many outstanding lending companies that had publicity to the now-liquidated Singaporean crypto hedge fund Three Arrows Capital (3AC). Again then, the previous CEO Michael Moro shared that the agency had managed to mitigate losses after 3AC had failed to fulfill a margin name on capital borrowed from Genesis.