Three Arrows Capital (3AC)

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Basics

  • Singapore based (21-10-2020).
  • Founded in 2012. Filed for bankruptcy on 2-7-2022.
  • In a short thread about VCs and dumping, this fund was a fast dumper (4-6-2022):

"While they didn't do it in minutes, they dumped [their unlocked tokens] in a day, also sending to binance."

History

  • For a good write up on why and how 3AC, an arb trader, got rekt so hard can be read here (7-7-2022).
  • From Decrypt (2-7-2022):

"Crypto investment firm Three Arrows Capital, also known as 3AC, filed for Chapter 15 Bankruptcy Friday, Bloomberg has reported. While not unexpected, the news brings an ignominious end to the prominent, decade-old firm that managed as much as $10 billion in assets as recently as March, according to blockchain analytics platform Nansen.

The filing emerged hours after Voyager Digital suspended trading and withdrawals, citing unpaid loans to Three Arrows totalling $646 million. Voyager issued Three Arrows a notice of default on Monday.

The firm lost roughly $200 million when UST destabilized and plunged in value in May. BitMEX, FTX, and Deribit have since liquidated 3AC’s positions."

"Voyager is owed 15,250 BTC and 350 million USDC, according to the company. Management said it originally asked for $25 million worth of USDC to be paid by June 24, but now it wants the entire balance of USDC and BTC by June 27. The news seemingly did not sit so well with Voyager investors as the company’s shares dropped 53% in value during a 24-hour period. "

Creditors

  • From a legal report (19-7-2022):

"According to the documents obtained by The Block, which are no longer available online, 3AC owes 27 companies roughly $3.5 billion. Notably, Genesis Asia Pacific Pte Ltd., a subsidiary of Digital Currency Group, is the largest creditor listed, having loaned $2.3 billion to 3AC. Other large creditors looking to see their funds returned through the legal process include Celsius Network, CoinList, and FalconX, which each lent between $35 million to $75 million in tokens to 3AC. (Interestingly, creditors also include 3AC co-founder Zhu Su, who is asking for $5 million, and Chen Kelly, the wife of 3AC co-founder Kyle Davies, who is seeking $65 million.)

Based on another report from The Block, it appears that some of these larger creditors are banding together to form a committee, including Digital Currency Group, Voyager, CoinList, Blockchain.com, and Matrixport as members."

Investments

  • mStable; turned out to have a backdoor deal on tokens. From a Prime Rating report (7-2022):

"In July 2020 community observed that some MTA tokens were unlocked unexpectedly and without announcement. Co-founder James Simpson admitted that the protocol team wasn't communicating clearly to the community about the deal and vesting schedule with a group of investors (DeFiance Capital, DACM, and Three Arrows Capital). Simpson explained the situation in this article."

Team