Twitter user @DrSoldmanGachs claimed that he is a creditor to troubled Singaporean crypto-hedge fund Three Arrows Capital (3AC), which has since been dissolved. owes According to a recent 3AC creditors meeting, $2.8 billion was owed. Additionally, many creditors have not yet made claims or disclosed the amount of their claims for confidentiality reasons.
DrSoldmanGachs reported that the meeting voted in a creditor group consisting of Voyager Digital and Voyager Digital. It also included Blockchain Access Matrix Port Technologies, CoinList Lend, and Voyager Digital. These five parties account for approximately 80% in the current level claims.
3AC assets could be bank account balances or direct crypto holdings. They may also include underlying equity in projects, nonfungible tokens and underlying crypto holdings. It is not clear how much equity the fund has left at the time of publication. The hedge fund was reported to have $6 billion in assets last year and $3 billion in liabilities.
3AC went bankrupt due to a series highly leveraged bullish directional bets that were made with borrowed money from crypto institutions. The company’s founders fled and defaulted upon loan payments left behind. This led to a significant spread of the virus among central finance companies that had lent money 3AC.
After the fund’s collapse, Su Zhu, and Kyle Davies, were unable to be found. Ironically, Su Zhu claims $5 million from 3AC. Chen Kaili Kelly is claiming $66million. These claims are reportedly quasi equity and subordinated to the distribution to creditors of any remaining assets.
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Three Arrows Capital (3ac), after making a number of large directional trades, (GBTC, LUNA and stETH), and borrowing from more than 20+ large institutions, went bankrupt.
The founders lost control, and crypto has been infected by mass defaults of loans.
— Jack Niewold (@JackNiewold) July 18, 2022