Three Arrows Capital (3AC), the crypto hedge fund that went into liquidation in mid-June in the British Virgin Islands, has borrowed around $3.5 billion, although the size of its assets is not yet clear. Its largest creditor was Genesis Trading at $2.4 billion, with an outstanding claim of $1.2 billion net of collateral. Genesis parent Digital Currency Group has bailed out the company. Voyager Digital, which went bankrupt due to its $650 million 3AC exposure, was the second largest creditor.
The third largest loan was from Equities First, which arguably was a contributor to the insolvency of crypto lender Celsius. The Celsius bankruptcy filing spoke of an un-named private lending platform that failed to return collateral in mid-2021. As a result, Celsius is currently owed $439 million. The Financial Times reported that Equities First is the platform. It lent $162 million to 3AC against collateral currently worth $91 million.
Yesterday Teneo BVI, the 3AC liquidator, published a 1,157 page document that was subsequently removed from its website. Two of the most interesting aspects are the Genesis claim and the affidavit from 3AC director Kyle Davies which lists the biggest debts.
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