Bankrupt Firm 3AC Owes Creditors $3.5B, Including $2.36B to Genesis

Key Insights:

• Court documents highlighted the 27 companies that Three Arrows Capital owed money to.
• The highest amount lent by any of them came from Genesis at $2.36 billion.
• Genesis had already sold off all collateral in order to prevent losses once 3AC failed to meet the margin call.

While on the one hand, the crypto market can be seen recovering today, on the other hand, one of the crypto market’s biggest hedge funds’ bankruptcy is being unfolded.

In the most recent development, a bunch of affidavits have revealed the money Three Arrows Capital (3AC) had been lent to from different companies.

3AC to Genesis

According to Teneo, the company hired to oversee 3AC’s liquidation recently published the court documents which highlight the companies and the total money Three Arrows Capital owed to them.

The 27 companies on the list cumulatively lent $3.5 billion to 3AC, out of which $2.36 billion came from Genesis Asia Pacific Pte alone.

Part of the Digital Currency Group (DCG), Genesis’ CEO Michael Moro, had clarified the situation the company was in earlier this month itself.

In a series of tweets, Moro stated that the loan Genesis provided to Three Arrows Capital was conditioned with a weighted average margin requirement of 80%.

However, once 3AC were found incapable of meeting said margin call, Genesis immediately sold the collateral and hedged their downside.

Adding to the same, Moro tweeted,

“Genesis has a range of business lines including trading, lending, derivatives, and custody services. We deploy a number of risk management strategies to ring-fence our portfolio and utilize all capabilities to mitigate losses quickly and effectively.”

Three Arrows Capital’s growth over the past couple of months made it one of the biggest hedge funds in the entire crypto space. However, the crash of May and June, which also wiped out the Terra ecosystem, brought 3AC to the brink of collapse.

Voyager gives some company

Sadly, Three Arrows Capital wasn’t the only one to meet its end due to the market crash as facing similar losses was Voyager Digital which ended up filing for bankruptcy earlier this month.

As reported by FXEmpire, Voyager took this decision a week after suspending withdrawals, trading, and deposits on its platform.

Voyager was also connected to Three Arrows Capital as about 60% of its loans were issued to 3AC, which failed to pay back 15,250 Bitcoin (BTC) and $350 million USD Coin (USDC) to the company. This also played a huge role in the collapse of Voyager Digital.