It’s the gift that keeps on giving, or rather, people kept on giving to Three Arrows Capital.
The saga goes on as revelations about creditors of the crypto hedge fund continue to pour in.
The latest twist — Three Arrows Capital (3AC) owes $270M to Blockchain.com, as reported by CoinDesk. Blockchain.com is a crypto platform that features an exchange, a wallet, and an institutional arm.
The news comes eight days after the Monetary Authority of Singapore released a statement outlining 3AC’s failures to comply with regulations. And just one day earlier, The Defiant reported on the official liquidation of the hedge fund.
Fall From Grace
It’s been an unbelievable fall from grace for 3AC, whose founders were generally regarded as wizards of the past crypto bull run. Comments on co-founder Su Zhu’s podcast appearances lauded the hedge fund manager’s trading abilities and his tweets have become the stuff of legend after 3AC’s collapse.
Zhu also coined the phrase “supercycle” — the idea that institutional adoption of digital assets would prevent the crypto markets from repeating the collapses of 2018 and 2014.
The fallout continued after Voyager Digital announced 3AC’s default on a $700M loan on June 27 and Kyber Network called out 3AC for not returning $7.9M in treasury funds on June 23. And all while the fund’s co-founder, Su Zhu, was tweeting positively as 3AC dumped stETH.
With the latest news that Blockchain.com may also be on the losing end after loaning 3AC money, the crypto world is still grappling with the apparent total disregard for risk management at one of its formerly most influential players.