On the evening of July 18, Teneo Restructuring, the designated unit to liquidate the assets of Three Arrows Capital (3AC), published 1,157 pages of documents submitted by creditors to claim assets from the fund. List of 27 companies/projects crypto Included in this category include Genesis Trading, Celsius, Voyager, CoinList, Galaxy Digital, SBI Crypto, BlockFi, Moonbeam,,…
Notably, Three Arrows Capital co-founder Zhu Su also claimed to be a creditor of the fund and demanded $5 million in compensation, while the other founder's wife, Kyle Davies, claimed $65 million.
However, the list below lacks names that have been confirmed to be involved from 3AC but may not have yet sent documents to the liquidator, such as: Blockchain.com, Deribit, DeFiance Capital, BlockFi, Babel Finance, Finblox,…
3AC juice, dive into 1,000+ pages of degeneracyhttps://t.co/WtfafWV4yh— db (@tier10k) July 18, 2022
Among them, the most prominent is Genesis Trading, a subsidiary of Digital Currency Group, the "giant" of the digital currency industry that owns the Grayscale investment fund and the CoinDesk media platform.
According to a creditor document sent to 3AC's liquidation unit, Genesis Trading claimed to have provided the fund with a $2.36 billion loan, but was not fully collateralized. This is much larger than the “9-digit” loss estimate given previously.
The collateral for the loan includes more than 17.4 million shares of GBTC and 446,928 shares of GETH, two of Grayscale's own crypto hedge fund products, and 2.7 million shares. AVAX the same 13.5 million NEAR. Genesis revealed that it sold all of 3AC's collateral when the fund was unable to meet margin call requirements.
It is not clear how much actual damage Genesis is suffering from the bankruptcy of Three Arrows Capital.
A spokesperson representing Digital Currency Group and Genesis Trading stated:
“Both DCG and Genesis still have plenty of assets. Genesis has no other relationship with Three Arrows Capital, the company will continue to operate stably and have abundant liquidity.”
Three Arrows Capital is an investment fund cryptocurrency famous, but suffered heavy damage after the fall of LUNA-UST in May, followed by massive asset liquidation when the market continued to correct in June. This fund was found to have borrowed unsecured assets from a series of other entities, creating a widespread knock-on effect. to Voyager, Finblox, Genesis Trading, Babel Finance, DeFiance Capital, Blockchain.com, Deribit, Kyber Network,…
On July 2, Three Arrows Capital filed for bankruptcy protection in a New York court. The fund was also previously asked by creditors to liquidate assets in the British Virgin Islands, where Three Arrows Capital is registered.
For more than a month from June 15, two fund founders, Zhu Su and Kyle Davies, were said to have "hidden" and showed a non-cooperative attitude with the asset liquidator.