Connect with us

3AC

Report: A British Virgin Islands Court Order Liquidates Crypto Firm Three Arrows Capital

Published

on

Report: A British Virgin Islands Court Order Liquidates Crypto Firm Three Arrows Capital

According to a recent report from Sky News citing a source familiar with the matter, “cryptocurrency insiders” have said that the troubled crypto hedge fund Three Arrows Capital (3AC) has been formally liquidated by a British Virgin Islands (BVI) court. The report does not disclose what type of assets face liquidation, but the sources remarked that “the [3AC] liquidation would be a significant moment in the current unraveling of the cryptocurrency sector.”

3AC Reportedly Liquidated by British Virgin Islands Court System — Reporter Says Immediate Financial Implications Are ‘Unclear’

Once again a source familiar with the situation has information pertaining to an embattled digital currency firm facing alleged financial hardships. According to Sky News, a source explained that Three Arrows Capital Ltd. has officially been liquidated by a British Virgin Islands (BVI) court. Sky News author Mark Kleinman details that it is “unclear what the immediate financial implications would be for Three Arrows’ creditors.” Bitcoin.com News reported on the crypto hedge fund’s initial troubles two weeks ago when The Block’s Frank Chaparro cited sources that said 3AC may have been liquidated for roughly $400 million.

3AC co-founder Su Zhu said on June 14, 2022, that his team was communicating with relevant parties. Since then, no one truly knows what has happened to the company and there have been various stories about 3AC’s alleged issues from ‘people familiar with the matter.’

3AC’s two founders, Su Zhu and Kyle Davies, founded the company in 2012 and when the stories of insolvency started both Zhu and Davies became very quiet on social media. Zhu, however, did tweet on June 14, that 3AC was “in the process of communicating with relevant parties and fully committed to working this out.” Allegedly, 3AC has significant exposure to Terra’s LUNC token and it has been said that 3AC’s stash of roughly $200 million in locked luna classic (LUNC) evaporated into less than a thousand dollars.

Advertisement

On June 29, Kleinman reported that a British Virgin Islands (BVI) court had formally liquidated 3AC assets. The report says that the news outlet had learned that “partners from Teneo in the British Virgin Islands has been lined up to handle the insolvency of the Singapore-based firm.” Kleinman further detailed that the BVI court order news stemmed from a “person familiar with the situation” and the order was filed on June 27. Furthermore, the journalist reached out to 3AC for a comment about the court’s alleged liquidation order and the company did not respond.

What do you think about the report that claims 3AC was liquidated by the BVI court system? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.

Advertisement

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Advertisement

3AC

Crypto winter update: Will the disaster of Q2 continue to cripple Q3 of 2022? 

Published

on

Crypto winter update: Will the disaster of Q2 continue to cripple Q3 of 2022? 

The collapse of Terra, 3AC, and insolvency crisis across crypto institutions has sent the market into severe bear tendencies over the course of Q2. Despite gradual recovery during July, the broader market remains tense and vulnerable right now. Bitcoin [BTC] is trading just below $22,900 while Ethereum [ETH] is mounting a massive rebound towards $1,600 after news of the Merge release date.

A Quarter to forget

The second quarter of 2022 has been catastrophic for the crypto space. Bitcoin and Ethereum fell 56.3% and 67.4% respectively, recording one of the worst quarterly performances in their history. The collapse of the Terra ecosystem led to a domino effect across space which culminated in billions of losses. The “crypto winter” also consumed liquidity provider Three Arrows Capital and the insolvency of crypto institutions such as Celsius.

CryptoCompare analyzed the events of the second quarter and what they could mean for the crypto industry. Despite the internal tremors of the crypto industry, the macro landscape is labeled as “dire” in the report. The crypto market has been taken aback by these severe market conditions. The alarm bells of a looming recession are well-anticipated in the risk-asset space right now.

The dramatic fall of the crypto market led to a sharp decline in Total Value Locked (TVL) in DeFi. In total, the value has fallen by 65.7% in this quarter. The report claims that this bear market could lead to the development of innovations in the space much akin to the 2008 Financial Crisis. This, in turn, could be the catalyst for the next bull run in the industry.

Advertisement

“We expect the TVL in DeFi to continue to stay range bound as the price of crypto assets attempts to recover from the current drawdown,” stated the CryptoCompare report.

Regulations and cyber security failures have also been highlighted during this quarter. Janet Yelen, US Treasury Secretary highlighted the risks associated with the crypto space after the Terra explosion. Lawsuits have been filed against Terraform Labs and other related entities in the aftermath of the crisis. The ongoing security crisis has been well-documented in previous reports. Over $1 billion has been stolen in DeFi exploits over the quarter which continues to threaten protocols.

Where does the crypto space stand?

Given the nature of the macro-economic situation, the current price rebound is a mini-rally during the bear market. Market enthusiasts continue to roll out ambitious plans for crypto. But the industry will suffer severely in the growing tensions across the market. Where the industry goes from here still remains a trillion-dollar question for now.

Advertisement

Kanav is a journalist at AMBCrypto. He has a Masters in Media and International Conflict and is interested in areas of digital society, crypto developments in the political sphere and the socio-cultural impact of a crypto-society.

Advertisement

Continue Reading

2022

Q2 2022 Cryptocurrency Report Highlights Terra’s Collapse And Capital Exiting The Crypto Ecosystem

Published

on

Q2 2022 Cryptocurrency Report Highlights Terra’s Collapse And Capital Exiting The Crypto Ecosystem

On July 13, the dedicated crypto price tracking, volume, and market capitalization web portal Coingecko published the company’s “Q2 2022 Cryptocurrency Report” which discusses the last quarter’s crypto market action and insights. The 46-page report explains how the Terra UST and LUNA fallout wreaked havoc on the entire crypto ecosystem and the stablecoin economy. Moreover, Coingecko researchers say “a decrease in the stablecoin market share suggests that a certain amount of capital has completely exited the crypto ecosystem.”

Coingecko’s Data Suggests Q2 Investors Exited Stablecoins Rather Than De-Risking Into Them

Coingecko has published the company’s second quarter cryptocurrency report for 2022 as there’s been a number of significant changes during the last three months. The study, published last Wednesday, notes that Q2 2022 was “filled with many unfortunate events in the crypto space.”

Advertisement

The crypto firm’s report explains that while spot market trade volumes have remained steady at $100 billion daily, “the top 30 coins have lost over half their market cap since the previous quarter.” Much of the crypto blunder started from a domino effect caused by the Terra UST and LUNA collapse.

Coingecko details that just before UST’s downfall, the stablecoin was the third-largest fiat-based token in existence, and $18 billion was erased in just a few days. The report notes that BUSD managed to become the third-largest stablecoin. Beside’s Terra’s UST, other stablecoin assets saw their valuations suffer and Coingecko’s analysts suspect a specific amount of funds have left the crypto economy. The researcher’s Q2 2022 study says:

The slight decrease (discounting UST) in stablecoin market share suggests that a certain amount of capital has completely exited the crypto ecosystem, in contrast to last quarter when investors likely de-risked into stables amidst market uncertainty.

The Terra and 3AC Fallouts Spread, Defi Market Cap Tumbles

The 46-page report further explains how Lido’s bonded assets were affected by the Terra blowout and the demise of the crypto hedge fund Three Arrows Capital (3AC). One specific chart shared in the study shows how 3AC’s financial issues affected at least 12 different crypto companies directly or indirectly.

Decentralized finance (defi) was also hit, as Coingecko’s authors say “Due to third-order effects, defi protocols such as Maple Finance were not spared as some users’ funds were lent to Orthogonal Trading, which in turn had gone to Babel Finance, one of 3AC’s creditors.”

Advertisement

Defi itself suffered a lot and Coingecko’s data shows that the defi market cap slid from “$142 billion to $36 billion in a span of 3 months.” The report again says that much of the value in defi was “wiped out largely due to the collapse of Terra and its stablecoin, UST.”

Coingecko’s study covers a wide variety of subjects that pertain to Q2 2022’s crypto action and touches on topics like other stablecoins losing their peg, decentralized exchange (dex) trade volumes, non-fungible tokens (NFTs), and NFT marketplaces. While the second quarter saw a lot of action, Coingecko’s report highlights how most of it has been bearish and gloomy.

Tags in this story

2022, 3AC, Babel Finance, Celsius, CoinGecko, DeFi, DEX, Dex Platforms, Lido, Lido’s bonded assets, Maple Finance, nft, NFT Markets, NFTs, Orthogonal Trading, Q2, Q2 2022, Q2 report, Q2 Study, report, Stablecoins, STETH, study, Three Arrows Capital, UST, UST classic, USTC, voyager

What do you think about Coingecko’s report and the action recorded in the second quarter of 2022? Let us know what you think about this subject in the comments section below.

Advertisement
Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons, Coingecko

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Advertisement
Continue Reading

3AC

Three Arrows Capital liquidators control $40M of the fund’s assets

Published

on

Three Arrows Capital liquidators control $40M of the fund’s assets

Three Arrows Capital liquidators control $40M of the fund’s assets Oluwapelumi Adejumo · 2 hours ago · 1 min read

The liquidators said the fund’s assets consisted of bank accounts, cryptocurrencies, NFTs, and stakes in other firms. 

1 min read

Updated: July 22, 2022 at 8:00 pm

Advertisement

Cover art/illustration via CryptoSlate

Three Arrows Capital (3AC) liquidators Teneo have gained control of assets worth $40 million belonging to the embattled hedge fund, Bloomberg News reported July 21.

The liquidators reportedly stated that the fund’s assets consisted of bank accounts, cryptocurrencies, NFTs, and stakes in other firms.

Bloomberg reported that Teneo representative Russell Crumpler declared on July 20 that 3AC founders Kyle Davies and Su Zhu were still in control of certain digital assets and bank accounts.

Crumpler reportedly stated that Teneo had contacted around 40 companies that 3AC might have invested in and about 30 crypto exchanges and banks.

Advertisement

In a separate filing on July 8, the liquidators said that Zhu and Davies were uncooperative and that their location was unknown.

The hedge fund owes its creditors $2.8 billion.

3AC’s creditors’ list includes Genesis; bankrupt crypto lending firms Voyager Digital and Celsius Network; Algorand, CoinList, and others.

Meanwhile, Su Zhu and Kyle Davies’ wife also filed claims against the embattled hedge fund.

3AC founders in touch with liquidators

A new Bloomberg report revealed that the 3AC founders are en route to Dubai and have denied claims that they were uncooperative.

Advertisement

According to Bloomberg, the “death threats” they had received forced them into hiding; however, they have still maintained communication with the liquidator.

Zhu reportedly said the firm had positioned itself for a market that didn’t eventually happen, a view also shared by his cofounder Davies who said:

“We had all of our, almost all of our assets in there. And then in the good times we did the best. And then in the bad times we lost the most.”

The co-founders also acknowledged that Terra’s implosion was part of the reason it failed. According to Zhu, they probably allowed their relationship with Do Kwon to cloud their judgment of the token.

Advertisement
Continue Reading

Top posts

Why there’s more to Fantom’s dApp ecosystem than what meets the eye Why there’s more to Fantom’s dApp ecosystem than what meets the eye
Altcoins3 hours ago

Why there’s more to Fantom’s dApp ecosystem than what meets the eye

The ever-growing Web3 space is continuing to find supporters in the market to make sure that it prospers into the...

8liens sweeps NFT market WITH 253% surge, but what of CryptoPunks, BAYC 8liens sweeps NFT market WITH 253% surge, but what of CryptoPunks, BAYC
Altcoins4 hours ago

8liens sweeps NFT market WITH 253% surge, but what of CryptoPunks, BAYC

The wider Ethereum [ETH] NFT market did not note any spine-tingling milestones recently, despite the altcoin hitting $2,000. In fact,...

Tron: Chalking out the odds of TRX unleashing its volatility Tron: Chalking out the odds of TRX unleashing its volatility
Altcoins5 hours ago

Tron: Chalking out the odds of TRX unleashing its volatility

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice...

The SOL goes on – All the reasons behind Solana’s latest uptick The SOL goes on – All the reasons behind Solana’s latest uptick
Altcoins6 hours ago

The SOL goes on – All the reasons behind Solana’s latest uptick

SOL has been progressing well on the charts over the last few days. In fact, Solana’s governance token has hiked...

Crypto Trading, Investing Illegal In Iran, Central Bank Governor Reiterates Crypto Trading, Investing Illegal In Iran, Central Bank Governor Reiterates
cbdc7 hours ago

Crypto Trading, Investing Illegal In Iran, Central Bank Governor Reiterates

It is illegal to buy or sell cryptocurrency in Iran, the head of the country’s monetary authority has recently reminded...

THE FIAT LUX SCHOLARSHIP PROGRAM THE FIAT LUX SCHOLARSHIP PROGRAM
Scholarships9 hours ago

THE FIAT LUX SCHOLARSHIP PROGRAM

Resilient students with distinctive life experiences have the chance to have a significant influence at the University of California, Berkeley...

THE EASTERN STAR SCHOLARSHIP PROGRAM THE EASTERN STAR SCHOLARSHIP PROGRAM
Scholarships9 hours ago

THE EASTERN STAR SCHOLARSHIP PROGRAM

Despite being a distinct institution, the Order of the Eastern Star belongs to the Freemasonry family. We are the biggest...

TA- The Price Of Axie Infinity Struggles Despite Crypto Relief Rally TA- The Price Of Axie Infinity Struggles Despite Crypto Relief Rally
Axie infinity (AXS)9 hours ago

TA- The Price Of Axie Infinity Struggles Despite Crypto Relief Rally

The price of Axie Infinity (AXS) has struggled recently with a few bullish signs against Tether (USDT) despite market sentiments...

Tornado Cash Governance Token TORN Shudders More Than 57% Since The US Government Ban Tornado Cash Governance Token TORN Shudders More Than 57% Since The US Government Ban
57% down9 hours ago

Tornado Cash Governance Token TORN Shudders More Than 57% Since The US Government Ban

Amid the crackdown against Tornado Cash, associated addresses, contributing developers, and anyone who uses the mixing platform, the project’s governance...

Investors, look at ‘Burning’ SHIB’s latest buying spree on Coinbase Investors, look at ‘Burning’ SHIB’s latest buying spree on Coinbase
Altcoins10 hours ago

Investors, look at ‘Burning’ SHIB’s latest buying spree on Coinbase

The crypto-market’s latest recovery efforts have pushed many of the industry’s top cryptocurrencies to monthly highs. However, the case of...

Ethereum Market Observes Pileup Of Leverage As ETH Breaks $2k Ethereum Market Observes Pileup Of Leverage As ETH Breaks $2k
ETH11 hours ago

Ethereum Market Observes Pileup Of Leverage As ETH Breaks $2k

Data shows a large amount of leverage has been piling up in the Ethereum futures market as the price of...

Tornado Cash: Down by >50%, are sanctions an opportunity for TORN holders Tornado Cash: Down by >50%, are sanctions an opportunity for TORN holders
Altcoins11 hours ago

Tornado Cash: Down by >50%, are sanctions an opportunity for TORN holders

Following an announcement dated 8 August, the Office of Foreign Assets Control (OFAC) barred U.S. residents from using Tornado Cash....

Axie Infinity Surpasses $4 Billion In All-Time Sales, Team Removes SLP Rewards From Classic Game Mode Axie Infinity Surpasses $4 Billion In All-Time Sales, Team Removes SLP Rewards From Classic Game Mode
$4 Billion11 hours ago

Axie Infinity Surpasses $4 Billion In All-Time Sales, Team Removes SLP Rewards From Classic Game Mode

After recording more than $4 billion in all-time sales, Axie Infinity announced the game’s classic mode will no longer allow...

Intelligent Automation: Greatly Driving The Future Of Robots Intelligent Automation: Greatly Driving The Future Of Robots
Intelligent Automation12 hours ago

Intelligent Automation: Greatly Driving The Future Of Robots

As technological advancement is in full swing and making the shift towards digitization, IT technology developers are making efforts to...

DeFi protocols Aave, Uniswap, Balancer, ban users following OFAC sanctions on Tornado Cash DeFi protocols Aave, Uniswap, Balancer, ban users following OFAC sanctions on Tornado Cash
Censorship13 hours ago

DeFi protocols Aave, Uniswap, Balancer, ban users following OFAC sanctions on Tornado Cash

DeFi protocols Aave, Uniswap, Balancer, ban users following OFAC sanctions on Tornado Cash Liam ‘Akiba’ Wright · 8 hours ago...

Binance CEO Says Exchange Recovered $450 Million From The Curve Finance Attack Binance CEO Says Exchange Recovered $450 Million From The Curve Finance Attack
$450 Million13 hours ago

Binance CEO Says Exchange Recovered $450 Million From The Curve Finance Attack

Following the recent Curve Finance attack, Binance CEO Changpeng Zhao announced that the exchange had recovered $450 million from hackers....

Research: Ethereum is recovering its dominance over stablecoins Research: Ethereum is recovering its dominance over stablecoins
Ethereum14 hours ago

Research: Ethereum is recovering its dominance over stablecoins

Research: Ethereum is recovering its dominance over stablecoins Andjela Radmilac · 9 hours ago · 2 min read Ethereum’s price...

Meet These Top 10 Companies Providing The Best Cybersecurity Solutions For 2022 Meet These Top 10 Companies Providing The Best Cybersecurity Solutions For 2022
Cybersecurity14 hours ago

Meet These Top 10 Companies Providing The Best Cybersecurity Solutions For 2022

With the growing evolution of technology, the need for cybersecurity practices has increased Starting from the governments to global tech...

Trending

Daily Bitcoin MiningEarn At least $50 daily with just your phone