Source Claims 3AC's Deribit Exposure Is Worth Much Less Than Reported
Three Arrows Capital's creditors could end up with the bag, says source who says hedge fund's exposure to Deribit isn't worth than $25 million.
New
Court documents that outline the insolvency of bankrupt crypto hedge fund Three Arrows Capital, also known as 3AC, may overestimate the value of the firm's remaining assets — in particular, its exposure to the exchange of Deribit crypto options.
In a 1,100-page affidavit written by liquidator Russell Crumpler and filed in a court in the British Virgin Islands, 3AC was described as "insolvent" and in need of complete "liquidation" because "we can't do reliance on its management to withhold any remaining assets for the benefit of creditors." The documents also detailed 3AC's remaining assets, which included shares of Grayscale Bitcoin Trust (GBTC), cryptocurrencies Bitcoin (BTC), Avalanche (AVAX) and Near (NEAR), and shares of Deribit. Liquidators want access to these assets to facilitate claims by creditors, which are worth at least $2.8 billion.
Total claims currently stand at $2.8 billion. Many have not yet made a claim, or quantified the amount of their claims for confidentiality reasons. Expect this figure to increase significantly as the deadline to make a claim runs until the day before the distributions
— Soldman Gachs ⌐◨-◨ (@DrSoldmanGachs) July 19, 2022According to the affidavit, Deribit shares are worth $500 million, or half of 3AC's remaining assets. However, a source with knowledge of the matter told Cointelegraph that...
Three Arrows Capital's creditors could end up with the bag, says source who says hedge fund's exposure to Deribit isn't worth than $25 million.
New
Court documents that outline the insolvency of bankrupt crypto hedge fund Three Arrows Capital, also known as 3AC, may overestimate the value of the firm's remaining assets — in particular, its exposure to the exchange of Deribit crypto options.
In a 1,100-page affidavit written by liquidator Russell Crumpler and filed in a court in the British Virgin Islands, 3AC was described as "insolvent" and in need of complete "liquidation" because "we can't do reliance on its management to withhold any remaining assets for the benefit of creditors." The documents also detailed 3AC's remaining assets, which included shares of Grayscale Bitcoin Trust (GBTC), cryptocurrencies Bitcoin (BTC), Avalanche (AVAX) and Near (NEAR), and shares of Deribit. Liquidators want access to these assets to facilitate claims by creditors, which are worth at least $2.8 billion.
Total claims currently stand at $2.8 billion. Many have not yet made a claim, or quantified the amount of their claims for confidentiality reasons. Expect this figure to increase significantly as the deadline to make a claim runs until the day before the distributions
— Soldman Gachs ⌐◨-◨ (@DrSoldmanGachs) July 19, 2022According to the affidavit, Deribit shares are worth $500 million, or half of 3AC's remaining assets. However, a source with knowledge of the matter told Cointelegraph that...
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