May Suffer $270M in Losses for 3AC’s Insolvency

Cryptocurrency Exchange might suffer Three Arrows Capital’s failure to repay its loans due to bankruptcy and liquidation of Three Arrows Capital resulted in losses of $270 millions.

Three Arrows Capital (3AC), an embattled cryptocurrency hedge-fund, filed for Chapter 15 bankruptcy to the U.S. earlier in order to preserve its assets.

Three Arrows Capital’s troubles were sparked by the collapse of LUNA UST to which the company is heavily exposed. A British Virgin Islands court ordered Three Arrows Capital into liquidation. CEO Peter Smith mentioned in a letter to shareholders that “Three Arrows is rapidly becoming insolvent and the default impact is approximately $270 million worth of cryptocurrency and U.S. dollar loans from”

He claimed that the company had deceived his colleagues in the cryptocurrency sector and sought legal assistance to protect his own interests and hold them responsible to the maximum extent.

The company stated that was operating well, and that its users would not be affected.

Three Arrows has repaid more than $700 million in cryptocurrency.

According to a Bloomberg Report in April, Cryptocurrency Exchange could go public as soon this year.

Digital asset lending firm, Genesis Capital, said it would take risks in filing for bankruptcy with Three Arrows Capital but would try to reduce the hedge fund’s bad debt risk as much as possible.

Source: Shutterstock



Leave a Reply

Your email address will not be published. Required fields are marked *


Follow NovaUmi

Let's connect on any of these social networks!

Subscribe to our newsletter.

We respect your privacy

Read More

Related Posts