Three Arrows Capital

Three Arrows Capital Claims Near $2.8B as Liquidation Process Intensifies

  • Creditors participated in a liquidator meeting on July 18.
  • One attendee posted information from the meeting, saying that the claims were as much as $2.8 billion.
  • The claims may very well increase, as some have not yet made or quantified their claims.

More news is coming out regarding the liquidation of Three Arrows Capital, with one creditor providing some news out of a liquidator meeting. Soldman Gachs revealed some information from the two-hour liquidator meeting in a Twitter thread, saying that creditor claims were at $2.8 billion, and could very well be higher.

The meeting covered various topics, and the liquidators agreed not to seek an alternative liquidator. Teneo remains the liquidator, and Soldman Gachs expressed confidence and trust in them. The liquidator meeting also saw them vote to have a creditor committee, which includes Digital Currency Group, Voyager Digital, Blockchain Access UK Ltd, Matrix Port Technologies, and CoinList Lend.

Those five entities are responsible for making about 80% of the current level of claims, the total of which Soldman Gachs said currently stands at $2.8 billion. However, he also noted that many have not made or quantified claims, which means that figure could be much higher.

SimpleFX
SimpleFX

Soldman Gachs said that while the information was supposed to be confidential, he felt obliged to divulge it out of “paramount public interest and the parties that have been affected have a responsibility to be open and transparent with their users, shareholders, lenders etc.”

Three Arrows Capital’s assets consist of bank account balances, crypto holdings, underlying equities in projects, and NFTs. Co-founder Su Zhu himself is claiming $5 million, while ThreeAC Limited is claiming $25m, and Chen Kaili Kelly (wife of Kyle Davies) is claiming $66m.

All in all, this brings yet another turn in the drama that is 3AC’s liquidation. Soldman Gachs expects the claims to increase.

No End to 3AC Drama

The fall of the crypto hedge fund has been the talk of the crypto world ever since it happened, and the number of twists and turns have only continued to stoke concerns. The bankruptcy filing even stated that the location of the co-founders was unknown.

Zhu broke his silence after a month, saying that the liquidators were simply baiting. He said that the company has been cooperating, though the tweet thread said otherwise.

In any case, the crypto world will keep a close eye on the developments. Both retail investors and companies will learn from this incident and seek to prevent any similar occurrences in the future.