Heatwaves and Hedge Fund Headaches
As temperatures soared across the globe in late spring and summer of 2022, the crypto world wasn’t short of its own hot flashes. Major players like Terra Labs and Celsius collapsed, leaving the financial landscape trembling. Enter Three Arrows Capital (3AC), a Singapore-based hedge fund whose dramatic downfall became the cherry on top of this crypto sundae of despair.
The Liquidation Drama Unfolds
While 3AC was officially ordered into liquidation by a court in the British Virgin Islands on June 27, the story didn’t end there. Liquidators have been chomping at the bit to gain access to the elusive Singapore headquarters of 3AC, citing a “virtual radio silence” from management. One can only imagine the scene: a bunch of suited-up financial folks desperately trying to locate cold wallets or critical trading account info amidst the chaos.
Why All the Fuss?
With creditors reportedly out of pocket for astronomical sums, it’s no surprise that the stakes have been raised. Imagine screaming into the void of a million-dollar loan—yeah, that’s the 3AC situation in a nutshell.
Singapore’s Regulator Stands Firm
As the scandal snowballed, the Monetary Authority of Singapore (MAS) felt the heat. The managing director decided to disassociate the country from 3AC, claiming the hedge fund had “little to do” with local cryptocurrency regulations. Telling someone they don’t know you at a party of failures? Ouch!
The Surge of South Korean Investigations
The fallout continued to ripple through South Korea, where prosecutors executed a search and seizure operation across 15 firms, including major crypto exchanges like Upbit and Bithumb. The investigation aims to uncover transactions tied to Terra and its notorious rise and fall, with 200,000 Korean investors left holding the proverbial bag after the market giveth, and then immediately taketh away.
Government Transparency: NFTs Included!
In a twist that even a soap opera couldn’t script, the U.S. Office of Government Ethics is now requiring senior officials to disclose their NFT investments. So, if you were hoping to hide a digital masterpiece just under the radar, think again. Any NFT worth over $1,000 must be disclosed if deemed an investment, leading one to ponder: will Washington’s halls be filled with pixelated art come next election season?
Ripple’s Ongoing Battle with the SEC
To spice things up even further, Ripple continues to clash with the U.S. Securities and Exchange Commission (SEC). The SEC has opposed letting 1,746 XRP holders aid in Ripple’s defense. Why? Because they’re rolling in affidavits claiming they’re victims of the SEC’s lawsuit and are just looking for justice—what a plot twist!
