The Disastrous Demise of Three Arrows Capital: A Creditors’ Quagmire

The High-Stakes Gamble of Three Arrows Capital

Once a titan in the crypto hedge fund galaxy, Three Arrows Capital (3AC) has hit rock bottom, owing a staggering $2.8 billion in claims according to the estimable Twitter oracle, @DrSoldmanGachs. This revelation was made during a creditors’ meeting that felt straight out of a soap opera—minus the commercial breaks.

Unraveling the Numbers

It’s worth noting that this claim amount might be tip-toeing on the conservative side. Many creditors either haven’t submitted their claims yet or are playing a game of cryptic confidentiality. Imagine a party where nearly everyone shows up but keeps their snacks hidden!

Key Players in the Creditors’ Committee

Hold onto your wallets, folks! A committee was formed, bringing together heavyweights like Digital Currency Group, Voyager Digital, Blockchain Access Matrix Port Technologies, and CoinList Lend. Together, they represent a mind-boggling 80% of current claims. Talk about a power lunch!

What’s Left in the 3AC Treasure Chest?

As for the assets of this beleaguered hedge fund, they resemble a chaotic yard sale filled with bank account balances, crypto holdings, and a hodgepodge of NFTs. Last year, 3AC flaunted a hefty $6 billion in assets, juxtaposed with $3 billion in liabilities—a financial see-saw that no one wanted to balance.

How Did We Get Here?

The downfall of 3AC can largely be attributed to a wild-west style of high-leverage trading that seemed to say, “What could possibly go wrong?” Well, as it turns out, a lot. With borrowed money from major crypto institutions, they made some overly ambitious bullish bets. Then, like a house of cards in a windstorm, everything crumbled amid the ongoing cryptocurrency bear market.

The Elusive Co-founders

As the dust settled, the dynamic duo of 3AC, Su Zhu and Kyle Davies, mysteriously vanished—poof! Ironically, while Su Zhu is reported to be filing a claim for $5 million, Kyle’s wife, Chen Kaili Kelly, is chasing a staggering $66 million. But hang on, folks! These claims are regarded as quasi-equity, making them lower priority in the grand distribution of whatever remains of 3AC’s assets.

Conclusion: A Crypto Cautionary Tale

So there you have it—a crypto crash that reads like a plot twist from a gripping thriller. As we keep an eye on the fallout from this calamity, one can’t help but wonder: is the crypto reality more fiction than fact?