Key Takeaways
- The assets included around $37 million in fiat money, tokens worth $238 million, NFTs worth $22 million, and venture investments worth approximately $502 million.
- The estimated assets are worth less than 3AC’s liabilities, which stand at more than $3 billion.
Defunct crypto hedge fund Three Arrows Capital has come under the media spotlight again. As per a recent media report,3AC estimated its assets to be worth $1 billion in July. The claim was substantiated by citing a document prepared by 3AC liquidator Teneo.
Reportedly, the assets included $37 million in fiat money, tokens worth $238 million, NFTs worth $22 million, and venture investments worth approximately $502 million. The report further adds that the estimated assets are worth less than 3AC’s liabilities, which stand at more than $3 billion.
“Due to volatility in the crypto market generally, together with the substantial number of illiquid investments held by the company, it is presently uncertain what level of recoveries will be made during the course of the liquidation,” wrote 3AC’s liquidator in the acquired document.
Earlier this month, Teneo seized $35.6 million from 3AC’s bank accounts in Singapore three months after getting approval from that country’s High Court to begin probing 3AC’s assets in the country. 3AC, which filed for Chapter 15 bankruptcy in early July at its peak, managed around $18 billion in crypto assets, making it one of the top firms in the industry.
3AC’s liquidity crunch can be traced back to the collapse of LUNA and its algorithmic stablecoin UST. 3AC held a significant position in the two assets, worth around $560 million at its peak and about $600 after the price crashed significantly. Users started speculating a potential bankruptcy after media reports revealed that 3AC had $245 million in ETH deposited on the lending platform Aave, which they used as collateral to borrow $189 million in USDC and USDT.
In total, 3AC owes 3.5 Billion US-Dollars to over 20 different companies, with the majority being in the crypto sector. The implosion of 3AC has created a ripple effect across the industry and has forced crypto firms, including BlockFi, Voyager, among others, to file for bankruptcy protection.
3AC court filing had revealed that 3AC owes over $3 Billion to creditors, and the firm’s biggest creditor is Genesis, a subsidiary of Digital Currency Group that owns Grayscale, loaning approximately $2.3billion
