Cryptocurrency lender Genesis Trading has liquidated the collateral of a “large counterparty who failed to meet a margin call to us earlier this week,” said CEO Michael Moro in a Twitter post Friday.
Moro added that no client funds were impacted and “we sold and/or hedged all of the liquid collateral on hand to minimize any downside.”
In a follow-up tweet, Moro said “we will actively pursue recovery on any potential residual loss through all means available, however our potential loss is finite and can be netted against our own balance sheet as an organization. We have shed the risk and moved on.”
The news comes shortly after crypto hedge fund Three Arrows Capital reportedly failed to meet its margin calls from its lenders, with crypto lender BlockFi being one of the firms that liquidated some of Three Arrows’ holdings.
Meanwhile, bitcoin (BTC-USD) -2.4% continues to trade in a narrow range of $20.2K-22.8K, changing hands at $20.5K at the time of writing. That comapres with its peak of $67.9K in November. The slump in the world’s largest digital token comes as liquidity gets pulled out of the decentralized space as investors keep shunning risker assets.
Earlier this week, (june 13) crypto lender Celsius paused all customer withdrawals, swaps and transfers.
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