(Bloomberg) -- Genesis, one of the largest cryptocurrency brokerages for institutional investors, confirmed that it was exposed to bankrupt hedge fund Three Arrows Capital and had mitigated its losses. 

Genesis sold collateral and hedged its downside once Three Arrows failed to meet a margin call, Michael Moro, chief executive officer of Genesis, said in a series of tweets Wednesday. The loans to Three Arrows had a weighted average margin requirement of over 80%, he said, without disclosing the total loan amount. 

Digital Currency Group, the parent company of Genesis, assumed some liabilities of Genesis to ensure its continued operation, Moro added. 

The fuller extent of the impact of Three Arrows on the industry is starting to emerge as more crypto lenders and brokers disclose exposure to the fund’s bad debt. Three Arrows Capital is set for liquidation ordered by a British Virgin Islands court, and it has filed for Chapter 15 bankruptcy protection in New York. Blockchain.com and Deribit, a crypto derivatives exchange, were among creditors that sought the liquidation of Three Arrows.

CoinDesk earlier reported that Genesis is subject to potential losses of “hundreds of millions” of dollars, in part due to exposure to Three Arrows and Babel Finance, a Hong Kong-based crypto lender that has halted withdrawals, citing people it didn’t identify.

Genesis declined to comment on the CoinDesk report.  

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