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Odaily Translator | Nian Yin Si Tang

Summary:

Summary:

- A series of documents shows that nearly 30 crypto companies have lent billions of dollars to Three Arrows Capital (3AC).

- Genesis is 3AC's largest creditor, lending $2.3 billion to the now-bankrupt crypto hedge fund.

- 3AC co-founder Zhu Su and the wife of another co-founder Kyle Davies are creditors of the fund.

The now-bankrupt crypto hedge fund owes $3.5 billion to 27 cryptocurrency firms, according to court documents released yesterday by the liquidators of Three Arrows Capital (3AC).

The largest creditor on the list is Genesis Asia Pacific Pte Ltd., a unit of Genesis Global Trading, the brokerage arm of Digital Currency Group (DCG), which lent 3AC a total of $2.3 billion. Genesis CEO Michael Moro recently said that DCG has taken on some of Genesis' debt, but it's unclear how much of that debt is still on Genesis.Genesis Global Trading’s interest in now-bankrupt Three Arrows Capital Corp.$1.2 billion claim filed

. The documents show that Genesis Asia Pacific Pte. Ltd. is claiming $1.14 billion in assets and collateralized AVAX and NEAR tokens worth a total of $91.3 million against Three Arrows.

Part of the collateral for these loans are 17.4 million GBTC shares, 446,928 ETHE shares, 2.7 million AVAX tokens and 13.9 million NEAR tokens, all of which have been liquidated by Genesis.

Before the Terra ecosystem collapsed in May this year, 3AC had grown into one of the largest hedge funds in the encryption industry, and the Terra crash caused 3AC to suffer heavy losses.Details of the 3AC loan were in a 1,157-page document that Teneo uploaded online on Monday.legal documentdisclosed in. Teneo was appointed last month to oversee the liquidation of 3AC. This document outlines the claims against 3AC. Days after a court in the British Virgin Islands appointed Teneo as liquidator, 3AC filed for bankruptcy under Chapter 15 of the U.S. Bankruptcy Code.Filed for bankruptcy protection in New York court

A spokesperson for DCG told The Block: "The balance sheets of both DCG and Genesis remain strong. With its exposure to Three Arrows now gone, Genesis continues to be well capitalized and its operations are returning to normal."

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other creditors

Following Genesis, Voyager Digital LLC, which recently filed for bankruptcy, lent 3AC more than $685 million in bitcoin and ethereum — an amount at current cryptocurrency prices.

Other well-known creditors of 3AC include DRB Panama Inc., the parent company of the encryption exchange Deribit, which lent 1,300 BTC and 15,000 ETH to 3AC, worth approximately $51 million at current prices; Celsius Network provided 3AC with approximately USDC loan of $75 million; CoinList Services provided a loan of $35 million; FalconX provided a loan of $65 million.

Kushagra Shrivastava, FalconX's vice president of executive operations and partnerships, declined to comment on the size of the loan to 3AC, saying he could not provide details of relationships with specific clients. However, he told The Block that FalconX “has no significant exposure or loss,” adding that the platform’s average collateralization ratio exceeds 160%.

“Unlike other major lenders in the space, all credit on FalconX is over-collateralized against highly liquid collateral (eg excluding GBTC) and scaled within our closed-loop ecosystem, enabling FalconX to maintain ownership and control,” Shrivastava said.

He added: “Thanks to strong risk management, a market risk-neutral approach and leveraging real-time on-chain analytics, FalconX emerged from the liquidity crisis stronger than ever. Our balance sheet is the largest ever. Despite difficult market conditions, we have continued to extend credit and have expanded our credit operations."

When contacted for comment, a CoinList spokesperson told The Block: “We lent 3AC some assets from our own balance sheet and they have defaulted on that loan. We are in the middle of legal proceedings trying to recover those assets .Their default will not affect any user funds, only assets on our own balance sheet. We closed our $100M Series A in October 2021, enough to provide years of operation (even if we don't get it back any loan asset) and will continue to help launch the best projects in the crypto space.”

The companies are all creditors in 3AC's bankruptcy proceedings and are seeking the return of funds. Interestingly, 3AC co-founder Zhu Su and Chen Kelly, the wife of 3AC co-founder Kyle Davies, are also among the creditors, with the former claiming $5 million and the latter claiming $65 million.

also,

also,According to three sources familiar with theAccording to three sources familiar with the
, Three Arrows Capital's creditor committee has been established, including five members.