Collapsed 3AC Owed 27 Firms $3.5B: An Insight
- Documents show that nearly 30 firms lent 3AC $3.5 billion
- Genesis was found to be the biggest creditor of the crypto hedge fund
The collapsed cryptocurrency hedge fund Three Arrows Capital (3AC) owes 27 crypto firms as per the latest court documents, which were published on Monday by the liquidators of the hedge fund. Additionally, the biggest creditor in the list is Genesis Asia Pacific Pte Ltd., a unit of the brokerage subsidiary of Digital Currency Group (DCG).
Genesis has lent 3AC a whopping $2.3 billion which confirms the statement from the CEO Michael Moro who earlier stated that DCG had taken on some of Genesis’ liabilities. Most crypto firms invested in the crypto hedge fund due to its huge assets under management but the exposure to the LUNA-UST model caused it great harm.
The details were revealed by Teneo, a court-appointed liquidator for 3AC on the official website which will be updated regularly as the process of liquidation of the firm continues. As previously noted by BitcoinWisdom, on Monday, the first creditors’ meeting happened for the collapsed firm.
The document mentioned above outlined the firm’s dues, which it filed for Chapter 15 bankruptcy in New York a few days after a court in the British Virgin Islands appointed Teneo as liquidator.
“Both the DCG and Genesis balance sheets remain strong. With no remaining exposure to Three Arrows Capital, Genesis continues to be well-capitalized and its operations are business as usual,”
a spokesperson from DCG told The Block.
Along with the crypto hedge, there are two other firms that are currently going bankrupt. These include Voyager Digital and Celsius Network. The two firms filed for Chapter 11 Bankruptcy due to several reasons including the global macroeconomic conditions and the bearish crypto market along with the collapse of UST-LUNA.
Celsius recently stated that it would not allow users to withdraw funds. On the other hand, the biggest creditor for the crypto lending platform is Pharos USD Fund SP to which the firm owes a significant sum of $81 million.
Speaking about the liquidation of said firms, billionaire investor and Shark Tank’s Mr. Wonderful, Kevin O’Leary, said that following this bear market, the crypto sector will emerge as a stronger species.
“It’s unfortunate that these companies have gone to zero but you end up with much stronger species.
O’Leary said.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
