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Contagion: Genesis faces huge losses, BlockFi's $1B loan, Celsius's risky model

Coin Telegraph LogoCoin Telegraph1 mo ago

Contagion: Genesis faces huge losses, BlockFi's $1B loan, Celsius's risky model

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A leaked investor call from Morgan Creek Digital suggests BlockFi liquidated 3AC for $1 billion, while Celsius reportedly maintained a highly risky assets-to-equity ratio last year that may have caused its recent liquidity woes.

According to Pomp, BlockFi ran into troubles liquidating the position as the GBTC discount dropped to around 34%, and the price went down as the firm went to sell the holdings.

CEO Michael Moro said the firm had mitigated losses with “a large counterparty who failed to meet a margin call to us.“We sold collateral, hedged our downside, and moved on.


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Article Details

Author / Journalist: Cointelegraph By Brian Quarmby

Category: Crypto

Topics: Celsius insolvency BlockFi FTX Celsius Wall Street Journal Three Arrows Capital Anthony Pompliano Morgan Creek Digital Crypto loans

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2022-06-30, 06:44:11

News Timezone: GMT -5:00

News Source URL: cointelegraph.com

Language: English

Reading Time: 4 minutes read

Article Length: 703 words

Coverage Area: United States

Availability: Desktop Web, Mobile Web

News ID: 21914

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About Coin Telegraph

Coin Telegraph Logo

Main Topics: Crypto

Official Website: cointelegraph.com

Update Frequency: 24 posts per day

Year Established: 2013

Headquarters: United States

News Last Updated: 8h ago

Coverage Areas: United States

Ownership: Independent Company

Publication Timezone: GMT -5:00

News Language: English

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Website Security: Secure (HTTPS)

Publisher ID: #11

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