3AC reportedly liable for $2.8 billion in creditor claims

Amount likely understated as many 3AC loan details remain confidential.

According to Twitter user @DrSoldmanGachs, a self-proclaimed creditor of troubled Singaporean crypto hedge fund Three Arrows Capital (3AC), the now-defunct entity owes $2.8 billion in claims, as reported. discovered a recent meeting of 3AC creditors. Additionally, the amount of the claim may be understated, as many either did not file a claim or did not disclose the amount of their claim for confidentiality reasons.

As DrSoldmanGachs said, the meeting voted to elect a committee of creditors including Digital Currency Group, Voyager Digital, Blockchain Access Matrix Port Technologies and CoinList Lend. These five parts above represent approximately 80% of the current level of complaints.

3AC assets are meant to consist of bank account balances, direct crypto holdings, underlying equity in projects, and non-fungible tokens. At the time of publication, it is unclear how much equity remains in the fund. Last year, the hedge fund reportedly held $6 billion in assets and $3 billion in liabilities.

Through a series of highly leveraged bullish directional bets with money borrowed from major crypto institutions, 3AC has become insolvent amid the current cryptocurrency bear market. Its founders reportedly fled and failed to repay their loans, causing major contagion among the centralized finance companies that loaned 3AC money.

The two co-founders of 3AC, Su Zhu and Kyle Davies, could not be located after the fund exploded. Ironically, Su Zhu is reportedly claiming $5 million from 3AC, while Chen Kaili Kelly, wife of Kyle Davies, is a...