Crypto markets have been doing quite poorly recently, with major companies like Coinbase going as far as to lay off a chunk of their employees. Even worse is the way some crypto lending platforms and other DeFi based projects have completely collapsed in value, folding entries into crypto ecosystems under the weight of the situation. From Solana to Celsius the list seems to keep growing with issues plaguing the crypto ecosystem in 2022. The most recent addition to this list seems to be a crypto Hedge Fund called Three Arrows Capital which collapsed, losing nearly $10 billion in assets. The firm is now headed to bankruptcy and is unable to repay lenders.
In light of this news, the co-founders of 3AC, Zhu Su and Kyle Davies, who started Three Arrows in 2012, have been reported missing. Indeed, they have been officially reported as “currently unknown”, ahead of a hearing that is scheduled for 9 a.m. ET on Tuesday to discuss the next steps in the liquidation process. Moreover, the founders have not yet begun to cooperate with the liquidation process “in any meaningful manner.” Lawyers in court have requested to keep the identity of the creditors anonymous. Zhu and Davies did not respond to requests for comment.
What do you think of the collapse of 3AC and will more crypto Hedge Funds follow them?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.