TechFlow news — Three sources familiar with the matter revealed that cryptocurrency market maker and lending firm Genesis is facing potential losses amounting to "hundreds of millions of dollars." One insider stated that Genesis' losses are partly tied to exposure to over-leveraged hedge fund Three Arrows Capital and crypto financial services provider Babel Finance, with the losses estimated at "several hundred million dollars."
Sources noted the exact figure of Genesis' losses may remain unknown for some time, as the company is seeking partial repayment from its counterparties, and some losses might have been offset by hedges. Another market source said that amid this uncertainty, Genesis has been pulling back credit lines from both sides of its counterparties.
