It’s unclear how unhealthy issues will get, nevertheless. Genesis, based on Silbert, is dealing with a liquidity difficulty however isn’t bancrupt. Putting apart the $175 million Genesis misplaced in an FTX buying and selling account, the lending firm’s actual issues stem from the early days of the crypto contagion, when one in every of its largest shoppers, the now-defunct hedge fund Three Arrows Capital (3AC), filed for chapter. Genesis filed a $1.2 billion declare towards 3AC, and should have loaned the hedge fund upwards of $2.36 billion, based on a courtroom submitting. It’s more likely to get a fraction of that again in the 3AC chapter course of.