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Genesis sought $1B emergency loan but never got it

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Genesis sought $1B emergency loan but never got it

Genesis sought $1B emergency loan but never got it Josh O’Sullivan · 53 mins ago · 1 min read

A confidential document uncovered by the WSJ depicts Genesis’ request for $1 billion loan to recoup liquidity as a result of FTX fallout.

1 min read

Updated: November 17, 2022 at 9:09 pm

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Cover art/illustration via CryptoSlate

Crypto lender Genesis sought out an emergency loan of $1 billion from investors in the wake of FTX’s collapse and ensuing bankruptcy but never got the funds it requested, The Wall Street Journal reported Nov. 17.

The loan request came before the company sent out a notification to clients earlier this week that it would be suspending redemptions.

Citing a  document it reviewed, the WSJ noted that Genesis sought the funds by Nov. 14 because of a “liquidity crunch due to certain illiquid assets on its balance sheet.”

The document reportedly explained an “ongoing run on deposits driven mainly by retail programs and partners of Genesis (i.e., Gemini Earn) and institutional clients testing liquidity.”

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A Genesis spokeswoman told the Journal that the confidential document was no longer current and noted that the company is having “very positive conversations” with potential investors to recoup liquidity.

Genesis announced  Nov. 16 that its crypto-lending unit was halting all customer withdrawals.

Past troubles with 3AC

Due to the default of Three Arrows Capital (3AC) and Genesis’ exposure, the firm faced hundreds of millions in losses of the over-leveraged hedge fund.

Owned by Digital Currency Group (DCG), Genesis’ CEO, Michael Moro, issued a statement earlier this year in response to the fallout of Genesis’ 3AC exposure:

“As we already stated on June 17, we mitigated our losses with a large counterparty who failed to meet a margin call to us. We sold collateral, hedged our downside and moved on. Our business continues to operate normally and we are meeting all of our clients’ needs.”

Both Genesis’ liquidity and the duration profiles of Genesis’ lending entity, Genesis Global Capital were negatively impacted.

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Bankruptcy

Kevin O’Leary paid $15 million as a FTX spokesperson, but lost it all

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Kevin O’Leary paid $15 million as a FTX spokesperson, but lost it all

Kevin O’Leary paid $15 million as a FTX spokesperson, but lost it all Soumen Datta · 2 hours ago · 1 min read

Kevin O’Leary said he spent $9.7 million in crypto, had FTX equity worth $1 million.

1 min read

Updated: December 8, 2022 at 8:38 pm

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Cover art/illustration via CryptoSlate

Canadian businessman and investor Kevin O’Leary revealed on Dec. 8 in an interview with CNBC that he lost all of the $15 million FTX paid him to represent the now-defunct crypto exchange.

BREAKING ‼️Kevin O’Leary got paid $15 Million to be FTX spokesperson.

That money belongs to FTX customers. 🤨

— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) December 8, 2022

During CNBC’s pre-market morning news program “Squawk Box,” the hosts confronted O’Leary for not properly assessing the risks associated with investing and promoting FTX. In response, O’Leary said he fell victim to “groupthink,” stating that none of his investors lost money.

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“The institutional interest in FTX on the US equity was unbelievable. The amount of people that approached me saying, ‘How do I get a piece of this deal?’ And I said at that time, ‘I’m a paid spokesperson, I cannot bring you in as an LP,” O’Leary said.

Speaking about the $15 million deal loss, he said he put about $9.7 million into crypto, had about $1 million of FTX equity, and a little over $4 million was cut due to taxes and agent fees.

However, some Twitter users are skeptical that he lost all his investments. 

The money conveniently vanished to zero. Funny how that happens. He won’t be returning a single red cent. pic.twitter.com/RaNa63hX7K

— 𝐓𝐗𝐌𝐂 (@TXMCtrades) December 8, 2022

 Nevertheless, the Canadian investor acknowledges that his investment was a bad one, as FTX mismanaged billions of dollars.

Even though the FTX vaporized billions of dollars, O’Leary refused to condemn Sam Bankman-Fried, without an audit. 

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“There’s only the murder of my money in this case… If you want to say he’s guilty before he’s tried, I just don’t understand it,” O’Leary said. 

Earlier, Kevin O’Leary supported Bankman-Fried after the ex-FTX CEO denied any connection to Alameda’s activities that brought down the whole market.

I lost millions as an investor in @FTX and got sandblasted as a paid spokesperson for the firm but after listening to that interview I’m in the @billAckman camp about the kid! https://t.co/5lWzTT7JEv

— Kevin O’Leary aka Mr. Wonderful (@kevinolearytv) December 1, 2022

Moreover, the Canadian businessman recently tweeted that he is not afraid of investing in failed entrepreneurs.

I am not scared of investing in entrepreneurs that have had catastrophic failures. Failure is often the best teacher.

— Kevin O’Leary aka Mr. Wonderful (@kevinolearytv) December 8, 2022

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Alameda’s capital portfolio reveals highest investments in Polygon, Hole, and Port Finance

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Alameda’s capital portfolio reveals highest investments in Polygon, Hole, and Port Finance

Alameda’s capital portfolio reveals highest investments in Polygon, Hole, and Port Finance Soumen Datta · 3 seconds ago · 2 min read

According to FTX/Alameda’s spreadsheet, the portfolio of FTX/Alameda contains nearly 500 illiquid investments spread across 10 holding companies.

2 min read

Updated: December 6, 2022 at 7:50 pm

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Cover art/illustration via CryptoSlate

The capital portfolio of the fallen quantitative cryptocurrency trading firm Alameda Capital was recently released by Financial Times, revealing some interesting investments.

According to the spreadsheet, there are nearly 500 illiquid investments spread across ten holding companies in the portfolio of FTX/Alameda worth $5.4 billion. 

Source: Financial Times

Two of the most significant investments were cryptocurrency mining firm Genesis Digital’s $1.15 billion investment and Open AI founded Anthropic’s $500 million investment. Crypto influencer Wu Blockchain thinks the investments were “ridiculous. “

The two largest investments, the $1.15 billion investment in Genesis Digital, a cryptocurrency mining company, and the $500 million investment in Anthropic, founded by OpenAI employees, are ridiculous.

— Wu Blockchain (@WuBlockchain) December 6, 2022

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Investments in Sequoia and Skybridge

A  $200 million investment in Sequoia, the venture capital firm that wrote down its FTX stake to zero earlier, is also included among the fallen trading firm’s holdings.

Further, the Alameda document lists an investment of $45 million in Anthony Scaramucci’s SkyBridge Capital. Per the spreadsheet, FTX transferred 30% of its stake in SkyBridge to Alameda to protect investors’ assets. Later, its founder Anthony Scaramucci revealed that SkyBridge had lost money on its holdings of FTX’s FTT tokens.

Additionally, the portfolio revealed the largest token investments in the form of HOLE – $67.5 million, Polygon – $50 million, NEAR (FTX) – $50 million, Port Finance – $33.5 million, and NEAR (Alameda) – $30 million.

Last month, FTX announced filing for Chapter 11 bankruptcy along with its sister entity Alameda Research and approximately 130 other companies related to FTX.

However, an analysis by Arkham Intelligence on Nov. 25 revealed that Alameda Research withdrew over $200 million from FTX.US before the company declared bankruptcy. In addition, Arkham disclosed in a Twitter thread that Alameda Research, FTX’s sister company, had collected $204 million from FTX US in the final days before the collapse of various crypto assets.

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Bankruptcy

Alameda’s capital portfolio reveals highest token investments in Polygon, Hole, and Port Finance

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Alameda’s capital portfolio reveals highest token investments in Polygon, Hole, and Port Finance

Alameda’s capital portfolio reveals highest token investments in Polygon, Hole, and Port Finance Soumen Datta · 9 hours ago · 2 min read

According to FTX/Alameda’s spreadsheet, the portfolio of FTX/Alameda contains nearly 500 illiquid investments spread across 10 holding companies.

2 min read

Updated: December 6, 2022 at 8:27 pm

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Cover art/illustration via CryptoSlate

The capital portfolio of the fallen quantitative cryptocurrency trading firm Alameda Capital was recently released by Financial Times, revealing some interesting investments.

According to the spreadsheet, there are nearly 500 illiquid investments spread across ten holding companies in the portfolio of FTX/Alameda worth $5.4 billion. 

Source: Financial Times

Two of the most significant investments were cryptocurrency mining firm Genesis Digital’s $1.15 billion investment and Open AI founded Anthropic’s $500 million investment. Crypto influencer Wu Blockchain thinks the investments were “ridiculous. “

The two largest investments, the $1.15 billion investment in Genesis Digital, a cryptocurrency mining company, and the $500 million investment in Anthropic, founded by OpenAI employees, are ridiculous.

— Wu Blockchain (@WuBlockchain) December 6, 2022

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Investments in Sequoia and Skybridge

A  $200 million investment in Sequoia, the venture capital firm that wrote down its FTX stake to zero earlier, is also included among the fallen trading firm’s holdings.

Further, the Alameda document lists an investment of $45 million in Anthony Scaramucci’s SkyBridge Capital. Per the spreadsheet, FTX transferred 30% of its stake in SkyBridge to Alameda to protect investors’ assets. Later, its founder Anthony Scaramucci revealed that SkyBridge had lost money on its holdings of FTX’s FTT tokens.

Additionally, the portfolio revealed the largest token investments in the form of HOLE – $67.5 million, Polygon – $50 million, NEAR (FTX) – $50 million, Port Finance – $33.5 million, and NEAR (Alameda) – $30 million.

Last month, FTX announced filing for Chapter 11 bankruptcy along with its sister entity Alameda Research and approximately 130 other companies related to FTX.

However, an analysis by Arkham Intelligence on Nov. 25 revealed that Alameda Research withdrew over $200 million from FTX.US before the company declared bankruptcy. In addition, Arkham disclosed in a Twitter thread that Alameda Research, FTX’s sister company, had collected $204 million from FTX US in the final days before the collapse of various crypto assets.

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