Three Arrows Capital owes Moonbeam about $27 million in the Polkadot ecosystem.

Hedge fund Three Arrows Capital (3AC) owes the Moonbeam Foundation $17 million in stablecoins and about $10 million in tokens issued on the blockchain platform. This is evidenced by the disclosed court documents.

«We reiterate our demand for the immediate repayment of the two remaining loans ($7 million in USDC and $10 million in USDT) and accrued interest in accordance with the terms of the master loan agreement in digital currency,» wrote the Moonbeam Foundation director in a letter to 3AC (dated June 2022).

The parties entered into the agreement on 20 September 2021. 3AC took out a short-term loan at 12% per annum.

Separately, Moonbeam Foundation engaged a hedge fund as a ‘liquidity consultant’ for the Moonriver (MOVR) and Glimmer (GLMR) utility tokens. Three Arrows Capital held more than 10 million GLMR and 200,000 MOVR, which were never returned to the Foundation. At the time of writing, the value of the assets was estimated at $9.74 million.

3AC was required to exercise ‘commercially reasonable efforts to open new markets’ for these two tokens, conduct a ‘market analysis’ and propose ‘appropriate exchanges’ for distribution. Moonbeam Foundation also paid the fund $90,000 as six months of consulting fees.

Documents also indicate that in October 2021 the Moonbeam developer company PureStake also provided Three Arrows Capital with an $8 million loan in USDC. The company’s chief operating officer Stefan Melhorn again demanded repayment in June 2022.

Moonbeam Foundation stated that the situation surrounding 3AC would not have a ‘material impact’ on the Foundation’s operations.

2/ 3AC was one of several providers that the Foundation used for such management services, and the loan agreements represent only a portion of the Foundation’s accounts.

— Moonbeam Network #HarvestMoonbeam (@MoonbeamNetwork) July 19, 2022

«3AC was one of several providers that the organization used for such management services. The loan agreements represent only a portion of the Moonbeam Foundation’s accounts,» wrote the team.

Earlier in November 2021 Moonbeam won in the auction for the Polkadot parachain’s second slot.

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