Genesis Trading has declared that the company will get an additional equity influx of nearly $140M from Digital Currency Group (its parent firm). As per the platform, the respective decision was taken to fortify the balance sheet as well as improve its status to emerge as a worldwide frontrunner in the capital markets related to cryptocurrency.
Genesis Sees Additional Equity Influx of $140M after Recent Events in the Market
Genesis stated that it additionally expects that the influx of equity will heighten the place of the venue and enable it to back up its consumers as well as meet the mounting demand for the services that it provides. This has been mentioned in a letter received by the customers, as shared on the behalf of Wu Blockchain on Twitter.
In its Tweet, the platform revealed that with up to $175M locked in the crypto exchange FTX, Genesis is additionally known as the biggest crediting company to Three Arrows Capital Babel Finance. Recently, Genesis trading brought to the front that the derivatives business of the venue had up to $175M amount locked in the trading account of FTX. FTX is going through a liquidity turmoil and has submitted a bankruptcy filing recently.
Genesis Emphasizes Having No Deal with FTX
Nonetheless, Genesis asserted that the market-making operations of the platform would not be influenced by the millions of dollars that are stuck in FTX. The company additionally disclosed that it does not have any relationship with the crypto platform Alameda or even FTX at the moment.
In line with the recently witnessed market activities that have ringed the alarms throughout the industry, several platforms are moving away from the collapse of FTX.
Coinbase, Kraken, Circle, and Tether are prominent among them and have announced clearly that they do not have any exposure to the beleaguered companies. In July this year, Genesis Trading has a position among the well-known lending institutions that were exposed to the Singapore-based hedge fund called Three Arrows Capital – which is now liquidated.
At that time, Michael Moro (the former CEO of the venue) mentioned that the company had been successful in managing to minimize the losses following the company remained ineffective to deal with the margin call regarding the capital that was rented from Genesis.