Market maker B2C2 wants to be part of Discount Genesis Debt

Market maker B2C2 wants to be part of Discount Genesis Debt

Genesis' crypto lending division suspended repayment of more than $2 billion in loans this morning in New York. And lender B2C2 is already trying to profit from the company's misery.

It is not yet clear whether Genesis' liquidity problems are temporary, but B2C2 has already thrown its hat in the ring to purchase Genesis' loans at discounted prices.

Max Boonen, founder of digital asset liquidity provider B2C2, offered to purchase Genesis' loans shortly after news of the company's repayments broke.

Boonen told Blockworks he expects a potential deal to close within the week, and B2C2 is looking for high-quality, short-term loans in the six-month range. There's no word yet from Genesis about their preferred term -- or whether they would even move forward with a deal -- but company officials have already had preliminary discussions with Boonen, he said.

Boonen declined to comment on specific numbers for a potential deal, saying he had not yet seen Genesis' balance sheet.

Alameda Research – the asset manager of former FTX CEO Sam Bankman-Fried – was among a small circle of crypto market makers. Aside from Genesis, only a few spot market makers would remain, including Cumberland, Wintermute and B2C2.

FTX made similar deals with Bankman-Fried following the collapse of Terra and Three Arrows Capital vocation bailing out troubled lenders is its responsibility. Boonen does not see a possible loan deal with Genesis in the same light.

“We are not doing this out of an altruistic impulse,” Booned said. “We believe you can actually make money” by acquiring discounted loans and strengthening B2C2’s reputation.

An asset sale between two of crypto's largest market makers would quickly provide Genesis with cash to avoid bankruptcy. Binance is also considering purchasing Genesis’ loans, Blockworks reported.

Genesis “seems to avoid [bankruptcy] at all costs,” said a source familiar with the matter, adding that the gambit would be risky and expensive. The source was granted anonymity to discuss sensitive business relationships.

A spokesman for Genesis did not immediately respond to a request for comment.

Whether Genesis can get its assets anywhere close to par value depends on whether it can stay afloat.

“If [Galaxy is] actually insolvent, their lenders' loans would be worth pennies on the dollar,” Boonen said.

Michael Bodley contributed reporting.

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The post Market Maker B2C2 Wants in on Discount Genesis Debt is not financial advice.