Saturday, July 2, 2022

Looking back on the timeline of the Three Arrows Capital (3AC) disaster.

In the past one month, Three Arrows Capital (3AC) is the keyword that has never cooled down in the crypto market. On July 2, this investment fund filed for bankruptcy and could be the end of a blockbuster blockbuster.

Chain of events that made the "seed" for Su and Kyle's disaster. Easy to say, UST and LUNA are time bombs, not only for individual investors, but also for the big hands, who have a lot of experience in the market.

It seemed that the Luna disaster had subsided at the end of May, but in early June, the depeg of stETH caused 3AC to receive another blow.

Of course, with a catalog filled with ticking time bombs, 3AC quickly took a hit in the days that followed.

On June 15, the social network Twitter began to spread information related to the health of the 3AC's portfolio, especially after the deep stETH depeg.

Then on June 17, the representative of this investment fund made the first speech. Notably, this statement revealed the seeds related to the LUNA-UST disaster in the past.

Fast forward to the milestone of June 29, 3AC was ordered to be liquidated by the British Virgin Islands (BVI) court. Notably, 2 representatives submitted a request to handle this case, Blockchain.com and Deribit

And finally, July 2, 3AC officially filed for bankruptcy in New York court. The consequences that 3AC brings to the crypto market are huge and persistent. Here are some names that have been heavily influenced by 3AC.

BlockFi

Multiple sources claim that BlockFi lends 3AC $1 billion collateralized with two-thirds in Bitcoin and the other one-third in Grayscale shares of GBTC. But the BlockFi side declined to comment on the above information. At the same time, BlockFi CEO Zac Prince confirmed that the damage from this incident was only $ 80 million.

Voyager Digital

Next was Voyager Digital, which lent 3AC 15,250 BTC and $350 million. Voyager Digital's series of events includes:

On June 18, Alameda Research (an investment fund with the same owner as FTX) lent Voyager Digital $ 485 million to reduce liquidity risk.

On June 27, 3AC was unable to repay the aforementioned loan to Voyager Digital.

And the latest, On July 2, Voyager Digital blocks deposits and withdrawals with users.

Genesis Trading

On June 17, Genesis Trading said that it is restructuring to minimize the impact of large partners who are borrowing from the company and not meeting the margin call requirements.

Then on June 29, a confidential source revealed that Genesis Trading lost "hundreds of millions of dollars" from 3AC.

Blockchain.com and Deribit

On June 29, Blockchain.com and Deribit filed an application with the British Virgin Islands (BVI) court to liquidate 3AC's assets for the reason of "insolvency".

Deribit has a complicated relationship with 3AC, as the investment fund is one of the shareholders of the parent company. Up to now, there is no information about the amount of money 3AC borrowed from the two exchanges mentioned above, and both Blockchain.com and Deribit confirm that users' assets are still safe.

Finblox

On June 16, Finblox announced liquidity problems and blocked deposits and withdrawals from users. Finblox revealed that 3AC is one of the main investors in the project and uses Finblox's money to make profitable investments.

Kyber NEtwork

In the past, 3AC had an OTC agreement to buy a “negligible” amount of KNC tokens. Kyber side said that the amount of KNC purchased from the aforementioned Treasury fund is no longer in 3AC's wallet, so this amount of tokens is not part of 3AC's recently liquidated assets.

Organizations that are “rumored” to be involved

At the top are the organizations that have spoken out about being involved in the 3AC disaster. Here are a few names that also "accidentally" have liquidity problems, but there is no information to confirm the cause and contact 3AC directly.

Babel Finance

On June 17, Babel Finance blocked deposits and withdrawals from users because of large liquidity fluctuations.

On June 21, Babel Finance said it had reached a debt agreement with its partners. However, this notice does not specify the numbers, or details of the amount of damage.

In particular, on June 29, information appeared that Babel Finance's leaders wanted to leave the company.

Regarding the damage, many rumors said that Babel was affected by up to "9 figures". However, there is no reliable source for the above information.

DeFiance

When this investment fund also has a pretty close relationship with 3AC. Before the 3AC bomb exploded, on June 13, DeFiance Capital founder Arthur_0x posted cryptic tweets about the "liquidity bomb"

However, recently, many speculations about DeFiance were even bigger, when Arthur said he would sit down with the team to "handle current issues".

KuCoin exchange

The latest, there is information about the KuCoin exchange also affected by 3AC. However, the CEO of this exchange has reassured, asserting these allegations are unfounded.


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