Genesis Debt Entices Market Maker B2C2

The liquidity provider B2C2 is in talks to purchase some of Genesis’ short-term loans at a discount


Blockworks exclusive art by axel rangel


Genesis’ crypto lending division paused redemptions on more than $2 billion of loans just this morning in New York. And fellow lender B2C2 is already looking to profit from the firm’s plight. 

It’s not yet clear whether Genesis’ liquidity troubles are temporary, but B2C2 has already tossed its hat into the ring to purchase Genesis’ loans at discounted prices.

Max Boonen, founder of the digital asset liquidity provider B2C2, offered to purchase Genesis’ loans shortly after news broke of the firm’s redemptions woes. 

Boonen told Blockworks he expects a potential deal would be finalized within the week, and B2C2 is looking for quality, short term loans in the ballpark of six months. There’s no word from Genesis yet on their preferred term — or if they’d even move forward on a deal — but representatives from the company have already engaged in preliminary talks with Boonen, he said. 

Boonen declined to comment on specific numbers for a potential deal, saying he has yet to see Genesis’ balance sheet.

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

FTX struck similar deals following the Terra and Three Arrows Capital collapses with Bankman-Fried calling troubled lender bailouts his responsibility. Boonen doesn’t see a possible Genesis loan deal in the same light.

“We’re not doing this out of an altruistic impulse,” Boonen said. “We think that there’s actually money to be made” by acquiring discounted loans and bolstering B2C2’s reputation.

An asset sale between two of crypto’s largest market makers would grant Genesis quick liquid assets as it looks to avoid insolvency. Binance is also considering buying Genesis’ loans, Blockworks reported.

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

A spokesperson for Genesis did not immediately return a request for comment. 

Whether Genesis can get anywhere close to face value on its assets will depend on whether it can stay above water.

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

Michael Bodley contributed reporting.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.


Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screen Shot 2024-05-16 at 14.53.45.png


Loss-versus-rebalancing (LVR) is arguably Ethereum DeFi’s biggest problem, and thus reducing LVR is fundamental to the success of Ethereum. This report dives into the world of LVR. We uncover its importance for AMM designers, discuss the two major mechanism design categories and various projects developing solutions, and offer a higher level perspective on the importance of AMMs in general.


Yesterday saw Congress’ upper chamber side with the House on a measure aimed at overturning SAB 121


Oklahoma’s new crypto bill will go into effect in November of this year


The deposits hit a $20 million cap in just 45 minutes


Twelve Democratic Senators voted in favor to pass the resolution Thursday

article-image is “aware” that bonding curve contracts on were exploited, and has since paused trading


Some investment pros are mulling crypto allocations between 1% and 10% and seeking ex-BTC exposure for interested clients