According to a Bloomberg report, the SEC and CFTC are investigating the bankrupt Bitcoin and altcoin company Three Arrows Capital. It is stated that the firm has misinformed investors about its balance sheet. It is also reportedly not registering with regulators. The investigation has not been officially confirmed. Only Bloomberg claims to have received reports from an anonymous source. Here are the details…
SEC and CFTC investigating Three Arrows Capital
US regulators are reportedly investigating Three Arrows Capital (3AC) following the company’s previous bankruptcy. According to Bloomberg, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are investigating whether Three Arrows violated certain rules regarding investor behavior. Specifically, regulators are investigating whether the firm misled investors about their balances. It is also stated that the company has not registered with either institution.
The SEC and CFTC have not confirmed whether any investigations are ongoing. As we reported on Kriptokoin.com, Three Arrows Capital was first impacted by the collapse of TerraUSD in May. He faced financial problems by losing money during this collapse. The company defaulted on a loan from Voyager Digital on June 27. On June 29, he was ordered to liquidate assets. Days later, on July 1, it declared bankruptcy.
The company is also battling with regulators in Singapore.
The company’s founders left their Singapore office in July before going to court. The lawsuit for this created more controversy. However, more recent reports suggest that co-founder Zhu Su has limited interaction with the courts. Three Arrows Capital is already under investigation by regulators in Singapore. These regulators argue that the company has provided false information to the monetary authority. It also claims to have exceeded its assets below the $250 million management threshold.
The company also complied with orders as part of bankruptcy proceedings. The Singapore Supreme Court has given liquidator Teneo permission to investigate the firm. However, today’s news marks the first investigative report by the SEC and CFTC, two of the largest US financial regulators. It is not yet clear how this new development will affect the already troubled situation.
3AC’s altcoin basket had these
Meanwhile, as we reported in this article, projects in the company’s altcoin basket had surfaced in the summer. According to Messari data, 3AC’s basket, prior to the liquidations, included ETH, NEAR, AVAX, DOT, UNI, AAVE, COMP, SNX, YFI. In addition, coins such as BAL, WOO, HXRO, PERP, DODO, ROOK, MTA, DHT and KNC were also in the hands of the company. However, it is possible that these coins were sold after filing for bankruptcy and liquidations.
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