Crypto hedge fund Three Arrows Capital (3AC), which managed nearly $10 billion until March, filed for bankruptcy late last month. The leading hedge fund was in debt of $3.5 billion to 27 different companies, including Blockchain.com, Voyager Digital and Genesis Global Trading, amid sales in April.
Three Arrows Capital still has $3.5 billion in debt, according to statements
The details come from statements revealing the details of the crypto hedge fund’s bankruptcy and liquidation. The debts, filed on July 7, were made public by Teneo, the firm hired to oversee the liquidation of 3AC. For a total of $3.5 billion, Genesis, a subsidiary of the Digital Currency Group, was 3AC’s largest creditor. According to court documents, the now bankrupt firm has passed $2.36 billion in a loan that is unsecured and has an 80% margin requirement.
Other 3AC creditors include DRB Panama, the operator of Deribit, which is pending 1300 Bitcoin (BTC) and 15,000 Ethereum (ETH) worth approximately $51 million. However, the latest reports suggest that the company has no Ethereum or Bitcoin to pay for it…
Among the 3AC creditors, the prominent ones on the list of creditors increased to a total of 20 according to the legal document. Among them were famous names. Others were not so popular names. Equities First Holdings LLC is listed as having lent the firm $162.06 million.
Additionally, ThreeAC Limited, the investment management division of 3AC, filed a $25 million lawsuit against the parent company. The following list of creditors disclosed in the liquidation file is still incomplete:
3AC creditor in Algorand
The Algorand (ALGO) Foundation also revealed that it is one of 3AC’s creditors.
In addition, ThreeAC Limited, the Investment Manager of the Fund, has filed a claim for $25 million. Other notable claimants are @DCGco, @investvoyager, @Algorand, @DeFianceCapital, @CelsiusNetwork, @CoinList, @galaxyhq, @SBICrypto, @BlockFi, @MoonbeamNetwork, and @BitGo
— Soldman Gachs ⌐◨-◨ (@DrSoldmanGachs) July 18, 2022
Major borrowers include DRB Panama Inc (15,000 ETH and 1,300 BTC-$65 million), FalconX, and CoinList, which is looking to buy back $35 million in USDC. However, most companies claim that they are not affected by the default of 3AC.
A tweet from DrSoldmanGachs showed that 3AC founder Su Zhu had filed a $5 million claim against the embattled hedge fund. Kelli Kali Chen, the wife of co-founder Kyle Davies, has reportedly filed a $65.7 million lawsuit against the firm.
The liquidator implied that there may have been wrongdoing while 3AC was in a so-called Zone of Insolvency, a period of time when there is a risk that a company may not be able to pay its debts when they fall due. Transfers that Kyle and Su made at that time may be clawed back
— Soldman Gachs ⌐◨-◨ (@DrSoldmanGachs) July 19, 2022
Meanwhile, reports revealed that ThreeAC Limited, 3AC’s investment management arm, filed a $25 million claim against the parent company. DrSoldmanGachs announced the formation of a creditors committee. The largest creditors such as Digital Currency Group, Voyager Digital, Blockchain Access UK Ltd, Matrix Port Technologies and CoinList Lend are on the committee.
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