Cryptocurrency exchange Genesis has been able to avoid a financial catastrophe by successfully containing exposure to Three Arrows Capital (3AC).
The company said that it mitigated losses by acting on time when the hedge fund failed to meet a margin call. 3AC has since gone bankrupt, dragging numerous companies down with it.
Genesis CEO Michael Moro assured that the exchange’s parent company, Digital Currency Group, has assumed some of the liabilities, but overall, Genesis is in a firm standing.
The company is also actively looking to “recover potential losses”, the executive said in a tweet shared with followers on social media.
3AC loans had a weighted average margin requirement of 80%, Moro continued. The executive previously teased about this development, arguing that Genesis has been able to mitigate its losses when a “large counterparty” missed a margin call.
Genesis is just one of the many companies in the cryptocurrency space which have taken a hit from the most recent US Federal Reserve rate hike.
Many companies, and cryptocurrency lenders in particular, have faced unprecedented pressure. Celsius Network and Vauld had to freeze withdrawals to the general dissatisfaction of consumers.
Meanwhile, cryptocurrency brokerage firm Voyager ended up bankrupt on Wednesday, marking the latest company to have folded from the space.
As the crypto winter continues, more companies are likely to fall victim to the unprecedented pressure and fleeting investors who have been cashing out their cryptocurrencies and converting it into other investments.
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