Top execs from Genesis and Galaxy are raising a $500 million fund

Leading executives for crypto investment and trading firms Galaxy Digital and Genesis are raising $500 million for a new crypto fund called DBA Crypto, according to a Securities and Exchange Commission (SEC) filing. 

The new fund filing says the first sale for the fund is yet to occur. Axios first reported the news on Monday. 

DBA Crypto Fund I LP lists a powerhouse crypto trading team as general partners including Galaxy Digital’s co-head of investments Michael Jordan, Genesis’s head of derivatives Joshua Lim as well as Genesis’s former vice president of trading Roshun Patel and Shane Barratt, who is CEO and founder of Convex Trading. 

Patel’s LinkedIn profile shows he left Genesis in March.  

Genesis Trading has recently shuffled its leadership, with CEO Michael Moro stepping down on August 17 and chief operating officer Derar Islim stepping in as interim CEO. The Block also reported that Genesis has reduced its headcount by 20%. 

Genesis’s leadership changes appeared to be in direct response to the firm’s recent high-profile losses. The trading firm lent $2.36 billion to defunct crypto hedge fund Three Arrows Capital (3AC). Its parent company, Digital Currency Group (DCG), stepped in to take on the firm’s liabilities and made a $1.2 billion claim against 3AC. 

Galaxy Digital also had exposure to 3AC and is listed as a creditor to the hedge fund. The investment firm posted a loss of $554 million in its recent quarterly earnings report and recently terminated a high-profile acquisition of crypto custodian BitGo. 

Patel declined to comment on the new fund when contacted by The Block. Genesis didn't immediately have a comment to make and Galaxy Digital did not respond to a request for comment by press time.