Genesis Asia Pacific Pte Ltd, a subsidiary of Digital Currency Group, lent $2.36 billion to Three Arrows Capital prior to its bankruptcy.
Three Arrows Capital, which was seen as one of the largest investment companies in the crypto money industry just a few months ago, received from Genesis. $2.36 billion could not repay the debt.
Genesis filed a complaint against Three Arrows Capital with the American Arbitration Association in New York on June 15 to seek repayment of some of its loans, stating that the company violated two loan agreements, one dated January 2019 and the other January 2020.
However, the company decided to stop this process after Three Arrows Capital’s Teneo-controlled liquidation process began.
It was learned in the past weeks that Genesis lent to Three Arrows Capital, but because of this debt, the company It was not known how much damage he was in.
Genesis CEO Michael Moro said on July 6 that the weighted average of the credit spread of their loans to Three Arrows Capital is 80% had explained. Genesis had to sell some of the collateral as Three Arrows Capital could not meet this requirement.
Digital Currency Group, Genesis “will be able to continue and expand its activities” He took these debts on himself so that he could have the capital. Therefore, any losses incurred by the loan to Three Arrows Capital will affect Digital Currency Group, not Genesis.