Troubled cryptocurrency hedge fund Three Arrows Capital’s biggest creditor has been revealed as Digital Currency Group Inc (DCG), the owner of Genesis Global Trading Inc, according to a report by The Wall Street Journal.
The report cites court documents as revealing that DCG’s Genesis Asia Pacific Ltd lent Three Arrows $2.4 billion, with the hedge fund putting down the equivalent of $1.2 billion in crypto and other collateral as of last month.
Three Arrows, which was founded in in 2012 by Su Zhu and Kyle Davies, suffered heavy losses in recent months due to the board sell-off in cryptocurrencies and was ordered into liquidation last month after creditors sued the hedge fund for failure to repay debts.
The court documents name more than two dozen entities that lent a combined $3.5 billion worth of dollars and crypto assets to Three Arrows, although some of those loans might subsequently have been partially repaid.
