Bankrupt 3AC Owes More Than $3.5B To Creditors Including Genesis

Bankrupt 3AC owes more than $3.5 billion to the creditors including Genesis as we can see more today in our latest cryptocurrency news today.

More than 67% of the 3AC multibillion-dollar debt is owed to one creditor alone and the bankrupt 3AC owes $3.5 billion to 27 different companies overall like Voyager Digital, Blockchain.com, and Genesis Global trading. The details came from the affidavits describing the details of the liquidation and bankruptcy of the hedge fund and they were filed on July 7 and made public by Teneo as the company hired to oversee the liquidation process.

3AC failed to repay loans and missed a few margin calls with the lenders as per the filings which emans the investment accounts dropped below require levels and weren’t topped up. Of the $3.5 billion, Genesis lent the most to 3AC. It passed the insolvent company $2.36 billion in a loan that was under collateralized and had a margin requirement of 80%. 3AC failed to repay the loans and missed margin calls with the lenders as per the filings which emans that the investment accounts remained below the required levels and weren’t topped up. The affidavit from Russel Crumpler, the Senior Managing Director at Teneo wrote:

“At this stage, it is unclear how the assets of the Company were dealt with by its founders and whether the assets of the Company were used toward the purchases that they have been making.”

Crumpler argued that the founders of the insolvent Company should not be allowed to deal with could be assets of the company. 3AC’s troubles started when Do Kwon’s Terra blockchain collapsed and caused a chain of liqudations, bankruptcies, and financial hardships for the entire crypto industry. 3AC lost $200 million when UST destabilized from the $1 peg and LUNA crashed in value in May.

As recently reported, The There Arrows Capital liquidation process took a new turn and the court-appointed liquidator of the insolvent crypto hedge fund Three Arrows Capital, Teneo also hired a new law company to convince the country’s High Court to recognize the liquidation order issued to 3AC that was issued by the British Virgin Islands as per the reports. If Teneo’s move is successful, it will enable liquidators to continue the 3AC liquidation process in the hedge fund’s city-state. Teneo can also subpoena 3AC co-founders Kyle Davies and Su Zhu that are now missing for a week.