Three Arrows Capital PTE. LTD.

Genesis operated as a prime broker for crypto, lending institutional money to hedge funds and trading desks, funded largely by crypto that retail customers deposited through partner platforms.

One of its largest borrowers was Three Arrows Capital.

a Singapore-based crypto hedge fund that had, at its own peak, managed several billion dollars using borrowed money layered on top of borrowed money, a strategy that works exactly once, for as long as every asset underneath it keeps rising.

When the Terra and Luna tokens collapsed in May 2022, wiping out roughly $40 billion of crypto value in a matter of days, Three Arrows was left holding losses across nearly every position it ran.

Genesis issued a margin call.

Three Arrows could not meet it.

Stage two, the default and the size nobody outside two companies got to see.

Genesis moved to liquidate what collateral it could actually reach.