Blockchain.Com Agrees To Cooperate With Authorities In Investigating Three Arrows Capital
- Blockchain.com confirms that it joined forces with Deribit to seek court intervention in liquidating three arrows capital (3AC).
Blockchain.com is one of the creditors of the distressed crypto lending firm, Three Arrows Capital (3AC). The crypto platform has stated that it has agreed to reveal all that it knows about 3AC. Following the liquidation of the crypto hedge fund, an investigation into the matter has started, and Blockchain.com affirms that it is cooperating fully.
Blockchain.com also confirmed that it partnered with crypto derivatives exchange platform, Deribit to seek a court order to liquidate 3AC. Blockchain.com and Deribit are among the creditors of the troubled crypto hedge fund. You’d recall that a British Virgin Islands court made a liquidation order on the 3AC earlier in the week.
Blockchain.com Come to Light on 3AC Crisis
Under this court’s order, two partners from Teneo (a consulting and advisory firm) are in charge of 3AC’s liquidation process. An email statement from a Blockchain.com representative states that the crypto wallet provider and exchange intend to make 3AC accountable for the loss it has caused the crypto industry by all legal means.
On Thursday, Singapore’s financial watchdog (the Monetary Authority of Singapore, MAP) also accused 3AC of providing fake information. The MAP also alleged that 3AC was managing more than the monetary limit its operating license could carry.
The financial watchdog also said it started investigating 3AC in June last year. The June 27 liquidation order on 3AC marks the end of one of the most popular crypto hedge funds.
The fund was launched ten years ago by ex-employees of the Credit Suisse group (kyle davies and Su Zhu). A march 2022 data from Nansen (a blockchain analytics firm) estimated 3AC’s assets under management to be nearly $10 billion.
In an interview with the Wall Street Journal (WSJ) in early June, 3AC co-founder, Kyle Davies, said the company was managing $3 billion worth of assets before the May crypto market crash.
A solicitor with Solitaire LLP, Nichol Yeo, told the WSJ that 3AC has various options under its consideration. Yeo added that 3AC would choose the best legal option as it is obtainable in the British Virgin Islands.
Nevertheless, Blockchain.com said 3AC’s repayment default wouldn’t affect its customers. The crypto wallet provider and exchange state that it has a solid financial position. Thus, it remains liquid and solvent. Despite 3AC being a shareholder in Deribit, the crypto derivatives exchange claims to be in a healthy financial position.
It is also worth noting that Deribit has a net debt that can cause the company to be distressed. 3AC’s insolvency issues have badly affected crypto firms such as Voyager Digital and Blockfi. Each of them has issued a notice of default to the fund without receiving any response.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
