3AC reportedly owes $2.8 billion in creditor claims

The numbers are probably overstated as much of 3AC’s borrowing details remain classified.

According to @DrSoldmanGachs, a self-proclaimed creditor of the now-defunct Singaporean crypto hedge fund Three Arrows Capital (3AC), the now-defunct corporation purportedly owes $2.8 billion in claims, as revealed during a recent 3AC creditors conference. In addition, the claim amount may be overstated since many claimants have either not filed a claim or have not shown the number of their claims for confidentiality reasons.

DrSoldmanGachs reported that the meeting decided to elect a creditor committee consisting of Digital Currency Group, Voyager Digital, Blockchain Access Matrix Port Technologies, and CoinList Lend. These five parties account for almost 80 percent of the current number of claims.

Bank account balances, direct crypto holdings, underlying project equity, and nonfungible tokens constitute 3AC assets. At the time of writing, it is unknown how much equity remains in the fund. The hedge fund allegedly possessed $6 billion in assets and $3 billion in liabilities in the previous year.

3AC went bankrupt in the current cryptocurrency bear market due to a series of highly leveraged bullish directional wagers made with borrowed funds from prominent crypto institutions. 3AC’s founders reportedly departed and defaulted on loans they had left behind, causing a severe contagion among centralised financial companies that had given the company money.

Su Zhu and Kyle Davies, co-founders of 3AC, could not be located following the fund’s collapse. Chen Kaili Kelly, the wife of Kyle Davies, is demanding $66 million from 3AC, while Su Zhu is allegedly seeking $5 million. However, it is believed that such claims are quasi-equity and subservient to allocating any remaining assets to creditors.

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