Three Arrows Capital’s debt totals $3.5 billion

The bankrupt hedge fund Three Arrows Capital (3AC) owed $3.5 billion to dozens of investors, according to a published court document.

Creditor claims pic.twitter.com/toacH54XM1

— db (@tier10k) July 18, 2022

The largest creditor of 3AC was the cryptocurrency OTC-platform Genesis with a debt of $2.36 billion. The debt of the subsidiary Digital Currency Group is secured by 17,443,644 shares GBTC, 446,928 shares GETH, 2,739,043 AVAX tokens and 13,583,265 NEAR. The value of the assets does not cover the liabilities.

Voyager Digital in March extended the fund an unsecured loan of 350 million USDC and 15,250 BTC. The debt is valued at $685 million.

Among other major creditors of 3AC are:

• Equities First Holdings — ~$162 million;
• Celsius Network — ~$75 million;
• FalconX — ~$65 million;
• Deribit — ~$51 million;
• CoinList — ~$35 million.

The wife of one of the co-founders, Kyle Davies, filed a claim for $65.7 million. Another co-founder, Su Zhu, lent the company $5 million.

3/ 3AC founders used their wives as creditors.

According to the paperwork, Kyle Davies’ wife is owed ~$66m.

You can’t make it up. pic.twitter.com/u2tnQT8rwg

— The Milk Road (@MilkRoadDaily) July 18, 2022

Deribit also claims that $31.6 million in stablecoins were transferred by 3AC to wallets of the trading platform Tai Ping Shan Limited. Earlier, Tai Ping Shan Limited denied links to the fund. However, according to the document, Davies’s wife and Su Zhu own a 52% stake through a joint venture.

The co-founders of 3AC bought a $50 million yacht to impress investors. Zhu has, in recent months, become the owner of two expensive bungalows in Singapore.

4/ The cherry on top?

3AC founders bought a $50m yacht using borrowed funds.

They wanted it to be the biggest yacht owned by any Singapore billionaires. pic.twitter.com/24LwS63tq7

— The Milk Road (@MilkRoadDaily) July 18, 2022

According to journalist Colin Wu, the amount of unsecured liabilities of 3AC is between $1 billion and $1.5 billion.

As reported, the fund’s liquidators are trying to conduct an investigation and preserve its Singapore assets.

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