Axios Pro Exclusive Content

Ex-Galaxy Digital and Genesis execs raising $500M crypto fund

Aug 29, 2022
Illustration of an open briefcase full of coins.

Illustration: Aïda Amer/Axios

A group of former Galaxy Digital and Genesis Trading execs are raising $500 million to launch a new crypto fund, according to an SEC filing.

Why it's the BFD: Despite this year’s bear market and crypto contagion, LPs still seem bullish on the future of blockchain and are willing to give some investors another chance to get it right.

Details: The filing for DBA Crypto Fund I LP lists Galaxy Digital’s Michael Jordan, Genesis Trading’s Joshua Lim and Roshun Patel, and quant trader Shane Barratt as general partners in the firm.

The intrigue: The fund represents a new act for some of the traders caught up in the collapse of the Terra ecosystem and subsequent liquidation of Three Arrows Capital.

  • In particular, Genesis swapped $1 billion worth of bitcoin for stablecoin TerraUSD (UST) in the weeks before it collapsed.
  • The crypto brokerage later filed a $1.2 billion claim against Three Arrows Capital (3AC) after lending it $2.4 billion.
  • Galaxy Digital also was listed as a creditor to 3AC, and — while it didn’t have as much exposure to the now-defunct crypto hedge fund as some others — the firm posted a loss of $554.7 million in its most recent quarterly earnings report.

DBA Crypto general partners declined to comment on the filing.

Go deeper