Bankrupt Crypto Fund 3AC Withdraws $45M From Curve Finance And Convex

Despite having filed for bankruptcy two months ago, cryptocurrency hedge company Three Arrows Capital (3AC) is nonetheless carrying out some sizable trades.

According to on-chain data, a wallet identified as belonging to 3AC by on-chain analytics company Nansen withdrew a total of $45 million from deposits that had previously been staked on Curve Finance and Convex Finance.

To be more precise, the wallet took around 20,945 staked ether tokens worth $33.3 million out of Curve. According to information from security company PeckShield, it took 2,421 wrapped ether worth $4 million, 202.7 wrapped bitcoin worth $4 million, and 4 million USDT from Convex.

3AC has not engaged in high-value transactions

The fact that holders of stETH won’t be able to exchange their tokens for ether until at least six months after the Merge, which is scheduled for September 15, may be one justification for the decision.

A Twitter speculator asserted that 3AC’s action demonstrates significant wallet owners’ intentions to sell their ether during the period of increased attention to Ethereum surrounding the Merge. Despite the general decline in the cryptocurrency markets, ether has demonstrated resilience in comparison to bitcoin by continuing its daily advance since August 29.

Before being liquidated and going bankrupt, 3AC was a well-known company that was recognized for having a significant impact on the movement of capital across the various crypto exchanges. In order to finance its trading positions, the fund aggressively borrowed money from significant lenders, taking on loans in the billions of dollars.

At the time of its bankruptcy, 3AC owed 27 crypto firms $3.5 billion, with the crypto brokerage Genesis being its largest creditor. Su Zhu and Kyle Davies, the fund’s founders, have allegedly refused to work with Teneo, the court-appointed liquidator in charge of the fund’s liquidation, and have largely kept to themselves in the months since the fund’s demise.

Teneo declined to comment on the most recent withdrawals from 3AC, stating that the restructuring company is focused on accelerating the liquidation process “to maximize asset recoveries on behalf of creditors.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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