By
Mayowa Adebajo
April 11th, 2024
Recent court documents of embattled crypto hedge fund 3AC show that the company owes $2.3 billion to Genesis Asia Pacific, one of the largest lenders.
As per the recent documents, more than 30 companies had lent billions of dollars to now-defunct crypto hedge fund Three Arrows Capital (3AC). On Monday, July 18. liquidators of 3AC published the court documents revealing the details.
The document shows that Genesis Asia Pacific was the largest creditor lending $2.3 billion to 3AC. Genesis CEO Michael Moro also confirmed that the parent group Digital Currency Group (DCG) has taken some of the liabilities of Genesis. Speaking to The Block, a spokesperson of the DCG said:
“Both the DCG and Genesis balance sheets remain strong. With no remaining exposure to Three Arrows Capital, Genesis continues to be well-capitalized and its operations are business as usual.”
Three Arrows Capital was once the biggest crypto hedge fund in the industry. However, the collapse of the Terra ecosystem left 3AC exposed. Teneo, the firm appointed to oversee 3AC’s liquidation published the 1000-page legal document online.
Crypto Lenders Loan to Three Arrows Capital (3AC)
Two of the insolvent crypto lenders – Voyager Digital and Celsius – have lent big amounts to 3AC. In fact, after Genesis, Voyager Digital was the second-biggest lender to 3AC with a loan of $685 million o 3AC in the form of Bitcoin (BTC) and Ether (ETH). Note that the loan amount is as per the current prices of the cryptocurrencies.
Similarly, crypto lender Celsius had loaned $75 million to Three Arrows Capital. Celsius offered this loan in USDC stablecoins in two different transactions of $50 million and $25 million. Crypto lender Celsius also filed for Chapter 11 bankruptcy last week and currently has a $1.2 billion deficit on its balance sheet.
Some of the other high-profile creditors to 3AC include DRB Panama Inc., the parent company of crypto exchange Deribit. DRB Panama had lent 1,300 BTC and 15,000 ETH worth a staggering $51 million as of the current prices. On the other hand, FalconX has lent $65 million while CoinList services lent $35 million to 3AC in USDC. Speaking to TheBlock, a CoinList spokesperson said:
“We lent some assets from our own balance sheet to 3AC and they’ve defaulted on that loan. We’re in the legal process of trying to recoup those assets. Their default doesn’t affect any user funds, only assets from our own balance sheet”.
Interestingly, 3AC co-founder Zhu Su and the wife of co-founder Kyle Davies are among creditors are also among creditors to the collapsed hedge fund. Zhu Su has put a claim of $5 million while Chen Kelly has put a claim of $65 million.