The Storm Before the Calm
In a dramatic turn of events, Danny Yuan, the head honcho of 8 Blocks Capital, raised the alarm on social media regarding the rumored insolvency of the infamous trading firm 3AC. Yuan took to Twitter like a modern-day Paul Revere, warning platforms holding 3AC’s assets to freeze them while they still can.
A Game of Risky Business
Yuan opened up about their longstanding relationship with 3AC, dating back to 2018. Initially, he believed 3AC to be a savvy player in the trading game, trusting them to handle billions responsibly, or at least less incompetently than your average toddler with a trust fund. Despite this faith, the relationship started showing cracks as concerns about 3AC’s finances festered.
Withdrawal Woes
It all started to unravel for 8 Blocks Capital on June 13. In response to concerning market conditions, they attempted a hefty withdrawal only to be met with silence. Talk about radio silence! After some time, they thought perhaps 3AC had just gotten really engrossed in a Netflix binge. But, spoiler alert: things weren’t fine.
Missing Money Mystery
The plot thickened when 8 Blocks discovered a missing $1 million through some nifty script work—cue dramatic music. Repeated attempts to connect with 3AC’s co-founder Kyle Davies were unceremoniously ignored. It’s like shouting into the void; all you get back is your own echo… and maybe some regret.
Unraveling the Web of Lies
When rumors of 3AC’s impending doom started swirling, Yuan decided it was time to share their own tale. This honesty led to a few friends of friends stepping forward, dishing out the dirt about 3AC’s leveraged long positions and those persistent margin calls. Yuan revealed that, instead of addressing their money problems, 3AC played the ghosting game, leaving the trading community hanging. In the wake of their silence, liquidations began to loom, sending the markets further into freefall.
The Call for Action
In the midst of this financial fiasco, Yuan urged any platforms still holding 3AC’s assets to hit the brake pedal and freeze their funds. He advocates for the potential legal proceedings to ensure 3AC can settle their debts before the ship fully sinks. So, will 3AC rise from these ashes, or has the curtain finally dropped on their grand performance?
