BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
FOLLOW
BlockNews.com
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides
No Result
View All Result
BlockNews.com
No Result
View All Result

Epic Fail: Three Arrows Capital (3AC)

BlockNews Team by BlockNews Team
July 13, 2022
in Business, Crypto
Epic Fail: Three Arrows Capital (3AC)
Share on TwitterShare on Reddit

3AC’s troubles might have started earlier this year after Zhu Su’s (one of 3AC’s co-founders) cryptic tweets stating that the company is “fully committed to working this out” and is “in the process of communicating with relevant parties.” Although there was no follow-up as to what specific issues were being referred to, the Financial Times reported that crypto lenders BlockFi and Genesis had liquidated some of their 3AC positions after the announcement. After that, it wasn’t very long afterward that terraUSD and Luna collapsed.

In May of 2022, Terraform Labs’ terraUSD (UST) – the most popular dollar-pegged stablecoin project – collapsed from about $60 billion to nearly $0 and wiped out investors’ money in what felt like mere seconds in a panicked sale that spread across the entirety of the space.

The Wall Street Journal reports that 3AC had invested $200 million in Luna.

In comparison, other industry reports put their exposure at around $560 million, but whatever the loss was, that investment was rendered almost completely worthless following the fall of the stablecoin project. 

The collapse of UST shook the confidence in the sector and exacerbated the fall in the price of cryptocurrencies which were already facing a broader pullback. Shortly after UST’s fall from grace, 3AC’s lenders naturally came demanding some of their investments, but as the money wasn’t there, many of the firm’s business partners could not meet these demands. 

One of the biggest of these partners was the digital asset brokerage firm Voyager Digital, which ultimately lost out, causing them to file bankruptcy after 3AC defaulted on their 670 million dollar loan.

Blockchain.com had also lost out on its $270 million loans, although its size allowed them to avoid bankruptcy for the time being. According to 3AC co-founder Kyle Davies in a WSJ interview earlier this month, “the Terra-Luna situation caught us very much off guard.”

3AC’s solvency liability came only weeks after turbulence in the crypto markets, which pulled the market cap from the November peak of $3 trillion in 2021 to where it sits today, hovering at a little over $900 million.

As of June 2022, liquidators announced that they could not locate either 3AC’s founders, Zhu Su or Kyle Davies.

They say neither party has yet to cooperate in the liquidation effort, and concerns have been raised that these founders or other parties will take off with 3AC’s assets. So far, the investigators are in the dark, and none of their questions have been answered.

Adding to the mystery, over a recent Zoom call, Su and Davies names had appeared, but their video was turned off, and they were on mute the entire time. Also, when the liquidators stopped by 3AC’s Singapore office, the door was locked, and mail was piled up outside the door, with neighbors reporting that no one had been in the offices since late May.

TweetShareShare

DON'T MISS THESE! HOT OFF THE PRESS

binance bitcoin - Eth
Business

Binance Makes a Comeback in Belgium, Three Months After Order to Stop

September 27, 2023
Coinbase Logo over dotted map of Europe
Business

Coinbase Strengthens European Footprint with Bank of Spain Registration

September 27, 2023
Crypto Coins on European Flag
Crypto

European Investors’ Rising Confidence in Cryptocurrency Divergent From US Sentiments

September 27, 2023
Terra Luna Logo
Crypto

Terra Classic Community Votes to Stop Minting and Reminting USTC Tokens

September 27, 2023
Lazarus Group Text
Crypto

North Korean Hacker Lazarus Group Amasses Over $40M in Bitcoin – Report

September 27, 2023
Mixin Network Logo with hacker behind it
Business

Mixin Network’s Cryptocurrency Loss Arouses Questions and Concerns

September 27, 2023
Load More
Next Post
MEMELAND by 9GAG

MEMELAND by 9GAG

CryptoPunk was Sold for $2.6 Million Despite Recent Dips

CryptoPunk was Sold for $2.6 Million Despite Recent Dips

Disney Chooses Polygon for Accelerator Program

Disney Chooses Polygon for Accelerator Program

Related News

cardano

Cardano Founder Proposes Partnership to Algorand

July 14, 2023
Crypto Funds-1

Startling Data Shows 97 Crypto Funds Have Collapsed This Year

August 8, 2023
Nexo

Nexo Offices Reportedly Raided by Police in Bulgaria

January 16, 2023

Browse by Category

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Featured
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized
Discord Twitter Instagram TikTok
BlockNews.com

BlockNews.com brings you the most important Crypto and NFT news in the space.

CATEGORIES

  • Breaking News
  • Business
  • Crypto
  • DeFi
  • Featured
  • Finance
  • Gaming
  • Guides
  • Investing
  • Media
  • Metaverse
  • NFT
  • Opinion
  • Politics
  • Social
  • Technology
  • Uncategorized

RECENT POSTS

  • Pop Social Raises $4M in Strategic Seed Round September 27, 2023
  • Texas now leads U.S. Bitcoin mining, outpacing former leaders Georgia and New York September 27, 2023
  • Binance Makes a Comeback in Belgium, Three Months After Order to Stop September 27, 2023

© 2022-2023 BlockNews.com - Crypto and NFT news website by JRNY Club.

No Result
View All Result
  • Home
  • Crypto
  • NFT
  • Metaverse
  • DeFi
  • Business
  • Technology
  • Opinion
  • Guides

© 2022-2023 BlockNews.com - Crypto and NFT news website by JRNY Club.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?