Nansen: $45 Million Withdrawal From Curve And Convex Finance Not By 3AC

Nansen said the wallet address linked to 3AC withdrew $45 million from Curve & Convex Finance currently owned by Matrixport, a 3AC partner. Matrixport is a registered crypto financial services provider in the British Virgin Islands. The purpose behind this action is still unknown.

As was updated in a previous Coincu News article, on September 6th, Cryptocurrency Hedge Fund Three Arrows Capital (3AC) which declared bankruptcy two months ago took a suspicious action when wallet associated with it withdrew a total of $45 million from Curve & Convex Finance.

On-chain data showed a wallet identified by on-chain analytics firm Nansen as belonging to 3AC withdrew a total of $45 million from deposits previously staked on Curve Finance and Convex Finance. 

More specifically, the wallet removed about 20,945 staked ether ($33.3 million) from Curve. From Convex, it retrieved 2,421 wrapped ether ($4 million), 202.7 wrapped bitcoin ($4 million) and 4 million USDT, according to data from security firm PeckShield.

This labeling has also been acknowledged by Nansen CEO Alex Svanevik as erroneous “we can (but rarely) make mistakes — no-one is perfect”.

According to Blockwork, a spokesperson for Nansen has revealed the true owner of the recently withdrawn wallet that is allegedly linked to 3AC.

“This wallet was labelled Three Arrows Capital (3AC) due to it receiving large amounts of crypto from another known 3AC wallet. After investigating further, we’ve confirmed it was a 3AC counterparty managing this wallet: Matrixport. We’ve updated the label to reflect this”.

A Nansen spokesperson said

Matrixport is a financial services platform for cryptoassets that includes trading, borrowing and lending, and staking products.

The purpose behind this stETH withdrawal is unknown, but many believe that by swapping stETH to increase the amount of ETH held before The Merge, investors can receive more PoW airdrop tokens from the fork. So they dumped stETH, causing the token to lose peg seriously, now 1 stETH is only exchanged for 0.96 ETH

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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