Genesis reports losses of around $7 million after hedging against market volatility

Crypto trading and lending firm Genesis Trading reported losses of around $7 million «across all counterparties» that include Alameda Research after it hedged and sold collateral on Tuesday in anticipation of market volatility following a liquidity crunch at FTX.

The company reiterated that it had no material exposure to FTX’s native token or «any other tokens issued by centralized exchanges.» It said that 95% of the collateral on its lending book is comprised of USD, stablecoins, bitcoin and ether.

Although Genesis said it did trade with FTX, it said the relationship did not extend to lending.

«Our business ops, including lending and trading across spot and derivatives, continue to run normally and our balance sheet remains strong,» the company wrote on Twitter. «Yesterday was a top 5 volume day for our derivatives business as clients turn to us during volatile market conditions to manage their risk.»

Crypto markets have been reeling from FTX’s collapse, with bitcoin dipping below $17,000 today as the market waits to see whether Binance will go through with its planned acquisition of the beleaguered exchange.

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