3AC crypto or the Three Arrows Capital managed around $10 billion in assets. This made it one of the prominent crypto hedge funds around the world. But now, it has entered liquidation! The firm is currently running into difficulties. Want to get more details related to this? Here is a post on the 3AC crypto discussing all the information you must be aware of!
Three Arrows Capital, popularly known as 3AC is a Singapore-based hedge fund. It was founded in 2012 by Kyle Davies and Su Zhu. It is among the high-profile crypto investors that are running into difficulties following the huge sell-off in the digital currency market. It is now nearing insolvency after incurring a minimum of $400 million in liquidations.
3AC Crypto is currently in trouble. The previously funded projects of 3AC crypto, Ethereum, Polkadot, and Avalanche, all of these are falling mark-to-mark as the cryptocurrency market is approaching its lowest point since the meltdown of 2018. It has also suffered losses during the Terra-UST crisis as it also invested in Luna. Three Arrows Capital is now nearing insolvency which is leading it toward trouble.
In this post, we will be discussing all the current details related to the 3AC crypto or the Three Arrow Capital. We will be providing you with information related to the crypto hedge fund 3 AC crypto’s liquidation in detail. So, without any further ado, let us dive into the post and find out everything crucial regarding the 3AC crypto.
What Is Happening With 3AC Crypto?
3AC Crypto or Three Arrows Capital having around $10 billion in cryptocurrency, has now filed for bankruptcy. It filed for bankruptcy in June in the British Virgin Islands after a sharp sell-off in digital currencies. The crypto hedge fund has collapsed and has dragged numerous investors down with this. 3AC has a long list of companies that have their money wrapped up in the company’s ability to survive.
The companies who had concentrated their bets on firms such as 3AC are suffering the results. With the downfall in the cryptocurrency market of more than $1 Trillion since April, firms shifted toward companies like 3AC and are hence facing the consequences. It is something huge as big names such as Blockchain.com, Voyager Digital, BlockFi, and Genesis among many others are facing the consequences. Let us read further to collect more details!
3AC Failed To Repay Loan
The Three Arrows Capital is highly in trouble as it has filed for bankruptcy. The insolvency of this crypto hedge fund has destabilized many other crypto lenders such as Blockchain.com which gave a loan of around $270 million to Three Arrows Capital and also Voyager which gave around $650 million in cryptocurrency to 3AC as a loan. Three Arrows Capital is unsuccessful in repaying the loan amount to the respective lenders. The list also includes crypto lenders BlockFi and Genesis among many others.
3AC had a strategy to borrow money from across the industry and then turn around to invest that capital in other crypto projects that are usually at the nascent stage. The strategy did not turn out well in the long term as Three Arrows Capital has been near insolvency. Let us read further to know about what is the state of the founders of 3AC Crypto.
Founders Of 3AC Crypto Cannot Be Located
The liquidators of 3AC, Christopher Farmer and Russell Crumpler claim that they can’t locate the founders of Three Arrows Capital. Both Farmer and Crumpler have been appointed to represent the company, repay the credit, and wind up its operations by the British Virgin Islands court. They even filed a parallel bankruptcy case in New York to shield the US assets of 3AC and also gain international recognition of the liquidation proceedings.
As per the liquidators, Davies and Su haven’t yet begun to cooperate with the liquidation effort. They have been demanding immediate access to the Singapore offices of Three Arrows Capital and the information related to the digital wallets and bank accounts of 3AC. The liquidators have also disclosed that they had a zoom call with the founders as their names were written in the participants. However, they are not sure if they were the founders or not as the video was turned off and they were on mute all the time.
An immediate hearing has been set to take place today which is on 12 July. Major crypto firms such as 3AC have led to huge damage to the cryptocurrency market which has not been fully realized until now. It is quite complicated to say what is going to happen next. We can wait until any other official confirmation is made and something else is disclosed. So, let us wait and watch what happens next!
We would like to conclude the post on the 3AC Crypto. In this post, we have mentioned all the crucial information related to Three Arrows Capital’s current position. It is quite complicated to state what is going to happen in the coming times. A hearing has been scheduled for today and it would be interesting to see what is new thing disclosed today related to this case. Share your views about the huge loss to crypto lenders like Voyager and what you think about Three Arrows Capital in the comments section. Also, if you find the post informative, share it with your friends and help them know about the well-known crypto hedge funds’ current situation.
Frequently Asked Questions
Q1. Who Owns 3 Arrows Capital?
A. The well-known Three Arrows Capital is founded in 2012 by Kyle Davies and Su Zhu. Three Arrows Capital is popularly known as 3AC crypto.
Q2. What Is 3AC Crypto?
A. 3AC Crypto or Three Arrows Capital is a crypto hedge fund that is based in Singapore. It was founded in 2012. 3AC has been ordered to liquidate by the British Virgin Islands court.
Q3. What Does Three Arrows Capital Do?
A. 3AC is a hedge fund manager that is known to provide risk-adjusted returns. The firm has its headquarters in Singapore and was founded in 2012 and has now been ordered to liquidate.