CeFi | Board shakeup at Celsius, Genesis blames Three Arrows Capital for losses

Major CeFi institutions have been in trouble for almost a month now, with the situation not improving. Voyager has entered bankruptcy proceedings awaiting court decisions; Celsius is experiencing a personnel earthquake with the situation unclear; and Genesis, even though it is related to "CoinDesk," had to come forward to clarify amidst rampant rumors.

Alameda Owes Voyager $370 Million

Amidst 3AC Capital's suspension of $650 million in unrepaid loans and poor market conditions, Voyager announced on 7/2 that it would suspend deposits, withdrawals, and trading, and filed for bankruptcy protection on 7/6.

However, it was only after the release of the documents submitted to the New York court by Voyager that it was revealed that Alameda Research, which had previously signed a $200 million, 15,000 BTC loan agreement with Voyager as assistance, was not only a supporter but also the second-largest borrower after 3AC.

The documents showed that Alameda Research borrowed $377 million from Voyager at interest rates ranging from 1% to 5%.

International media outlet Decrypt subtly mentioned the relationship between the two. Alameda Research had actually been Voyager's largest shareholder, holding 11.6% of the shares when the price was slightly above $1.

However, a week later on 6/23, Alameda announced the unconditional return of 2.29% of the shares, reducing its stake to 9.49%, slightly below the SEC's 10% threshold. The stock price had also plummeted to $0.56 per share.

Celsius Boardroom Shake-Up

Starting on 6/13, Celsius suspended trading and withdrawal functions. In addition to ongoing restructuring of their on-chain debts, documents from 7/6 revealed that Celsius had terminated the following board positions in June:

• Gilbert Nathan
• John Stephen Dubel
• Laurence Anthony Tosi

Financial officer David Barse and Alan Jeffrey Carr have joined the board, alongside CEO Alex Mashinsky and co-founder and Chief Strategy Officer Shlomi Daniel Leon.

Genesis Admits Losses from Negotiations with 3AC

On 6/30, Genesis Trading, a large lending and trading company under the DCG group, issued a statement through CEO Michael Moro, stating that they had significantly offset losses from a "large trading counterparty" who failed to replenish collateral.

It was only after an anonymous source leaked the information that Moro responded, and on 7/7, he finally confirmed on Twitter that the counterparty was 3AC. He emphasized that they had immediately sold the collateral and hedged risks to ensure long-term capital operation and business expansion.