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It’s unclear how unhealthy issues will get, nonetheless. Genesis, in accordance with Silbert, is going through a liquidity challenge however shouldn’t be bancrupt. Placing apart the $175 million Genesis misplaced in an FTX buying and selling account, the lending firm’s actual issues stem from the early days of the crypto contagion, when one in all its largest shoppers, the now-defunct hedge fund Three Arrows Capital (3AC), filed for chapter. Genesis filed a $1.2 billion declare towards 3AC, and should have loaned the hedge fund upwards of $2.36 billion, in accordance with a court docket submitting. It’s prone to get a fraction of that again within the 3AC chapter course of.
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