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On Wednesday (August 17), full-service digital currency prime broker Genesis, a wholly-owned subsidiary of Digital Currency Group (DCG), announced that CEO Michael Moro is “stepping Earlier reports have stated that Genesis faced a potential nine-figure loss from its exposure to 3AC, but the exact size of the debt has not been reported until now. Three Arrows Capital (3AC), a cryptocurrency hedge firm that just filed for Chapter 15 bankruptcy in New York, received a $2.36 billion loan from Genesis. It required a The report claims a division owned by the firm, Genesis Asia Pacific, granted an undercollateralized loan to 3AC. In June 2025, Genesis began a legal process to compel the According to The Street, 3AC’s biggest creditor, trader Genesis Asia Pacific, a subsidiary of Digital Currency Group, loaned 3AC $2.36 billion. Crypto lender Genesis gave Previously, documents show that 3AC owes Genesis a loan debt of $2.36 billion. Additionally, they demonstrate how inadequately collateralized the debt is and how One of the creditors, Genesis Asia Pacific, is now revealed to have lent the crypto firm around US$2.36 billion, making it one of the claimants of the firm’s US$2.8 billion Court documents highlighted the 27 companies that Three Arrows Capital owed money to. The highest amount lent by any of them came from Genesis at $2.36 billion. Bankrupt crypto lender Genesis has agreed to settle $1 billion in claims by defunct crypto hedge fund Three Arrows Capital (3AC) with a payment of $33 million, court

Genesis\'s $2.36 Billion Loan to 3AC: Unraveling the Crypto Meltdown

The collapse of Three Arrows Capital (3AC), a cryptocurrency hedge fund that filed for Chapter 15 bankruptcy, sent shockwaves through the crypto market. At the heart of the crisis lies a massive $2.36 billion loan provided by Genesis, a full-service digital currency prime broker and wholly-owned subsidiary of Digital Currency Group (DCG).

Genesis Asia Pacific\'s Undercollateralized Loan

According to reports, Genesis Asia Pacific, a division of Genesis, granted the undercollateralized loan to 3AC. This substantial debt, totaling US$2.36 billion, made Genesis one of the largest creditors of the bankrupt firm. Court documents reveal that Genesis was the largest single lender among the 27 companies owed money by Three Arrows Capital.

Previously, documents surfaced showcasing the $2.36 billion loan debt owed by 3AC to Genesis, underscoring the inadequately collateralized nature of the agreement. The lack of sufficient collateral amplified the impact of 3AC\'s failure on Genesis and the broader crypto ecosystem.

The Aftermath: Losses and Leadership Changes at Genesis

The fallout from the 3AC loan significantly impacted Genesis. Earlier reports indicated a potential nine-figure loss for Genesis due to its exposure to 3AC, although the exact amount remained undisclosed until now. In a related development, On Wednesday (August 17), Genesis announced that CEO Michael Moro is “stepping down."

Genesis Settles with 3AC for Pennies on the Dollar

Bankrupt crypto lender Genesis has agreed to settle $1 billion in claims by defunct crypto hedge fund Three Arrows Capital (3AC) with a payment of $33 million, court papers show.

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