Blockchain Deribit Demands Three Arrows Capital Liquidation
2022.07.01 22:16
Blockchain Deribit Demands Three Arrows Capital Liquidation
- Blockchain com, and Deribit confirmed that they are among creditors that sought the liquidation of Three Arrows, Bloomberg reports.
- In March, Nansen valued Three Arrows at $10 billion. Before April’s crisis, it controlled $3 billion.
- Three Arrows Capital was recently reprimanded by Singapore’s Monetary Authority for giving incorrect information and exceeding the AUM threshold.
The cryptocurrency hedge fund Three Arrows Capital (3AC) was having financial difficulties, and several of its creditors wanted the firm to be liquidated. Among those creditors were Blockchain.com and Deribit.
According to Bloomberg, firm executives and a court document confirmed that the two were creditors of the hedge fund, which went bankrupt a few days ago and is now being liquidated.
“We believe Three Arrows Capital defrauded the crypto industry and intend to hold them accountable to the fullest extent of the law,” said a spokesperson at Blockchain.com. They add that they have submitted paperwork to initiate the immediate liquidation of all Three Arrows Capital worldwide assets.
On the other side, the Deribit team had shown beyond a reasonable doubt that it had connections to Three Arrows Capital. Nevertheless, it assured investors that there would be no problems with the company going bankrupt since the company would still be financially strong even if the loans weren’t fulfilled.
Three Arrows Capital managed billions of dollars in crypto assets until the market meltdown. Nansen estimates Three Arrows’ assets at $10 billion in March. Before April’s crypto market crash, it controlled $3 billion.
In related news, the Monetary Authority of Singapore penalized Three Arrows Capital for providing inaccurate information and handling more money than it was authorized to manage. Since June of 2021, according to a statement released by the central bank, it has been investigating the conduct in question.
