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3AC Withdraws $45m from Curve and Convex amid Bankruptcy

by Blockchain NewsSeptember 7, 2022

Three Arrows Capital (3AC) might have declared bankruptcy, but the firm is still conducting a number of robust transactions, according to insights derived from on-chain data.

The company, which was also declared as a liquidated entity by a court in the British Virgin Islands, has unstaked a total of 20,945 staked ether (stETH), worth $33.3 million, from Curve Finance.

The transaction was discovered in part because the crypto analytics platform, Nansen, had already marked the wallet address used for the transaction as belonging to 3AC. Su Zhu ran the firm and also withdrew some funds, including 2,421 wrapped ether (3.98 million), 202.7 wrapped bitcoin ($4 million) and 4,051,367 USDT stablecoins from the Convex Finance protocol as well.

The wallet address attached to Three Arrows Capital that was used to initiate the transaction with Curve is also what is being used to keep hold of the unstaked $45 million. According to the balances in the Wallet at the time of writing, a total of $57.86 million.

Prior to its liquidation and subsequent bankruptcy, 3AC was a highly capitalized firm, serving as both a hedge fund as well as an active investment outfit in the broader Web3.0 ecosystem. The trading platform is known to be the prominent backer of key projects like Fireblocks and Terraform Labs.

The bet on Terraform Labs fueled its downfall, and the cataclysmic impact accounts for what has dragged many other crypto firms like Voyager Digital into the bankruptcy circle.

According to liquidation proceedings, it was discovered that the embattled crypto hedge fund owed as much as $3.5 billion to creditors, one of whom was Blockchain.com.

While Teneo Restructuring is in charge of the liquidation proceedings, some investors, particularly those with small stakes in the firm, can be adjudged as not having a visible edge in reclaiming their funds.

It is not immediately clear what the unstaked funds are meant for, as no comment or reference has been gleaned from 3AC or its representatives.

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Su Zhu Amongst Creditors Files $5m Claim against His Own Firm: Sources

by Blockchain NewsJuly 19, 2022

Su Zhu, the co-founder and CEO of bankrupt Three Arrows Capital (3AC), is reportedly amongst the creditors that filed claims against the embattled crypto hedge fund.

This news was shared by a Twitter user named ‘Soldman Gachs’ who also claimed he was one of the creditors of Three Arrows Capital.

“I’ve just seen the list of creditors to #3AC and noticed that @zhusu has filed a claim for $5 million. While being on the run, he has somehow found the time to diligently and ruthlessly fill out forms to pursue a claim against his own Fund,” he said in a tweet.

While the news that Su Zhu filed a claim against his own company may sound bizarre, Soldman Gachs also revealed that ThreeAC Limited, the investment manager of 3AC, also filed a $25 million claim against Three Arrows Capital. The creditor also shared the list of other creditors of the company, citing the likes of Digital Currency Group (DCG), Algorand, CoinList, and the MoonBeamNetwork amongst others.

Teneo Restructuring published the list of the creditors, which is made public for the first time since it was appointed by a court in the British Virgin Islands (BVI) to handle 3AC’s liquidation process. These creditors were reportedly expected to have a meeting on Monday, July 18.

The total value of all claims against Three Arrows Capital came in at $2.8 million, and per Soldman Gachs, some of these creditors filed for just $1 with the right.

It is highly unlikely that 3AC has enough collateral and assets to meet up with all of these claims, a harsh reality that might make some creditors lose their funds. The liquidation process is a cycle in the current crypto ecosystem, and one of 3AC’s creditors, Celsius Network, has also filed for bankruptcy in the US recently.

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Tagged : 3Ac / Liquidation / News / Su Zhu / TENEO / Three Arrows Capital

Three Arrows Capital Files for Chapter 15 Bankruptcy in the US

by Blockchain NewsJuly 4, 2022

The embattled cryptocurrency hedge fund, Three Arrows Capital (3AC) has filed for Chapter 15 bankruptcy in the United States of America as it looks to preserve its assets in the country.

According to the filing lodged with the U.S. Bankruptcy Court for the Southern District of New York (Manhattan), creditors will not be able to seize the firm’s assets in the US with this move.

A court in the British Virgin Islands ordered the liquidation of Three Arrows Capital last week as the company was unable to meet its obligation to creditors such as BlockFi, and Voyager Capital.

The woes of Three Arrows Capital were ignited by the collapse of LUNA-UST which the company has a significant amount of exposure.

The entire event of the two tokens fueled a market onslaught that many projects are yet to recover from today. The ongoing liquidation of 3AC is being handled by Teneo Restructuring, and without legal protection such as the Chapter 15 Bankruptcy that 3AC is filing, the firm might enlist the company’s assets around the world as this is the process it started its functions with according to sources close to the matter.

The bankruptcy case is tagged Three Arrows Capital Ltd and Russell Crumpler, 22-10920, and the company is being represented by the law firm Latham & Watkins.

Three Arrows Capital was one of the first and most celebrated crypto hedge funds that were founded by Credit Suisse traders, Su Zhu and Kyle Davies. At its peak this year, the firm had about $10 billion in Assets Under Management (AUM) in March according to data from Nansen. In the wake of its challenges, Voyager Digital has issued a notice of default to the company, claiming 3AC has not been able to repay a loan worth $650 million.

It is unclear if 3AC and its founders will be subjected to any legal reprimand from authorities as to the Monetary Authority of Singapore (MAS) accused the firm of sharing false information while it was operating in the country.

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Tagged : Bankruptcy / Legal / Liquidation / TENEO / Three Arrows Capital

Three Arrow’s Su Zhu Puts Singapore Luxury Home for Sale

by Blockchain NewsJuly 2, 2022

Su Zhu, the co-founder and Chief Executive Officer of embattled Three Arrows Capital (3AC) has put his Singapore mansion for sale.

According to a report by Bloomberg, the mansion, categorized as a Good-Class Bungalow, one of the most luxurious homes for high networth individuals in Singapore was listed for $35 million, equivalent to the amount it was acquired for.

The listing of the house comes as the liquidation of Three Arrows Capital is underway as ordered by a court in the British Virgin Islands. While there is no confirmation that the proposed sale of the good-class bungalow has any connection to the distressed company, chances are that the sum could be deployed to the firm whose finances are now being strained going to the ongoing crypto market onslaught.

According to the Bloomberg report, Su Zhu and his wife, Tao Yaqiong Evelyn have two of these good-class bungalows. While the first, located at Balmoral Road was purchased under a Trust last year, the second, located at Dalvey road was purchased under Tao’s name.

The distress that led Su Zhu to put up his mansion for sale is an encompassing one as 3AC which ranks as one of the biggest crypto hedge funds with over $10 billion in Assets Under Management (AUM) as of May was unable to pay its creditors.

As reported earlier by Blockchain.News, Voyager Capital issued a notice of default to the embattled company last month for a loan worth about $650 million. Other notable platforms including FTX, and BlockFi have also liquidated the hedge fund founded alongside Kyle Davies.

It is yet unclear how 3AC’s creditors will be paid, but sources close to the liquidation process pointed out that Teneo Restructuring, based in the British Virgin Islands is responsible for the liquidation, and the firm is in the stage of valuing the company’s assets. A website will be announced in a short while for creditors to make their claims, the sources say.

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Tagged : GOOD-CLASS BUNGALOW / Liquidation / News / Su Zhu / TENEO / Three Arrows Capital

British Virgin Island Court Orders the Liquidation of Three Arrows Capital

by Blockchain NewsJuly 1, 2022

Earlier this week, a court from the British Virgin Islands ordered the liquidation of embattled crypto hedge fund Three Arrows Capital (3AC), as the firm proved beyond doubt that it cannot fulfil its debt obligations.

As reported by Sky News, Teneo, a British Virgin Islands-based firm has been tapped to handle the liquidations. Sources close to the liquidations say Teneo is in the earliest stages of the entire process and is trying to determine what assets 3AC has.

The sources who pleaded anonymity as the matters have not yet been made public said over the next couple of days, Teneo will set up a website with instructions on how creditors can file claims for a refund. There is no idea of how long the refund process will last or whether every creditor will be paid in full.

Prior to the public knowledge of the liquidation, Three Arrows Capital was issued a default notification by Voyager Digital for $350 million in the US dollar-pegged stablecoin, USDC, and 15,250 Bitcoin, worth about $306 million based on the price of Bitcoin pegged at $20,066.55 as at the time of writing according to data from CoinMarketCap.

While the liquidation of Three Arrows Capital has lent its own distress to the broader digital currency ecosystem, a handful of other crypto-focused platforms also record a very worrisome liquidity crisis. With BlockFi almost escaping insolvency with a recent $250 million capital injection from FTX Derivatives Exchange, Celsius lawyers are advising the firm to file for Chapter 11 bankruptcy.

This series of events is a reverberation from the collapse of Luna Classic (LUNC) and the Terraform Labs-backed algorithmic stablecoin, USTC. 3AC was reported to have deep exposure to these two tokens, and their collapse might have contributed to the speedy downfall of the hedge fund.

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Tagged : Liquidation / News / TENEO / Three Arrows Capital