money pit – At the end of June 2022, the investment fund Three Arrows Capital (3AC) was capitulating under its mountain of debt and went bankrupt. Today we learn in more detail what projects have lent what amounts to this hedge fund. Not sure that they will ever see the color of this money again, given the importance of this decent to hell.
3.5 billion dollars of loans to repay!
Since theliquidation order which hit the Three Arrows Capital fund on June 27, the skeletons keep coming out of the closet. As reported by The Block, several documents reveal the disastrous scale of the accumulated loans by 3AC.
The fund should, in all, the tidy sum of $3.5 billionnear 27 companies of the cryptosphere. 3AC’s largest creditor would be the Digital Currency Group (DCG) brokerage subsidiary called Genesis Asia Pacific. On its own, the latter would have lent 2.3 billion of dollars at Three Arrows Capital.
Travel Digitalwho also found himself bankrupt by domino effectis 3AC’s second largest creditor, with the current equivalent of 650 million of dollars lent in the form of bitcoins (BTC) and ethers (ETH).
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Celsius claims $75 million from Three Arrows Capital
One of the documents revealed by Teneo – the judicial liquidator of 3AC – lists the companies that have already carried complaints to (attempt to) recover money lent by 3AC. And the debts claimed are in the tens of millions of dollars for some:
It will be noted that the very bad condition Celsius Networkin full restructuring attemptasks for reimbursement of 75 million of dollars (loaned in USDC stablecoin). Even if this debt were repaid, it would not save Celsius on its own. Remember that the lending service itself has a hole of 1.2 billion in its balance sheet.
The crypto stock market Deribit demands a little more 50 millions of dollars at 3AC. Indeed, its parent company, DRB Panama Inc., had lent 1,300 BTC and 15,000 ETH to the hedge fund.
Three Arrows Capital also owes a total 27 million of dollars to the project of Moonbeam Foundation of the Polkadot (DOT) ecosystem, including 10 million GLMR tokens.
Since the catastrophe of Terra (LUNA), a contagious succession of downfalls of crypto projects and companies has occurred. If the crypto-asset market seems, for now, to have stabilized, we are still far from being able to speak of a lasting rebound. In the interval between us and a bullish rally, will other fragile players in the cryptosphere collapse in turn ?
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