Bankrupt Crypto Fund 3AC withdraws $45 million from Curve Finance, Convex
- The crypto hedge fund owed $3.5 billion to 27 crypto companies at the time of its bankruptcy.
- Restructuring firm Teneo says it is “inappropriate to comment” on speculation surrounding 3AC’s transactions
Cryptocurrency hedge fund Three Arrows Capital (3AC) declared bankruptcy two months ago, but is still conducting relatively hefty transactions.
On-chain data shows that a wallet identified by on-chain analytics firm Nansen as belonging to 3AC withdrew a total of $45 million from deposits previously placed on Curve Finance and Convex Finance.
More specifically, the wallet removed around 20,945 staked ether ($33.3 million) from Curve. From Convex, it obtained 2,421 wrapped ether ($4 million), 202.7 wrapped bitcoin ($4 million) and 4 million USDT, according to data from security firm PeckShield.
Since filing for bankruptcy in June, 3AC has not completed any high-value transactions; and the purpose behind Tuesday’s withdrawal is not clear. One reason behind the move could be that stETH holders will not be able to redeem their tokens for ether sooner at least six months after the merger, which is scheduled for September 15.
A Twitter speculator proposed that 3AC’s move shows that major wallet holders are planning to liquidate their ether during the period of increased focus on Ethereum around the merger. Crypto markets are mostly down, but ether has shown strength against bitcoin, staying in a daily uptrend since August 29.
Before its liquidation and subsequent bankruptcy, 3AC was a high-profile firm known for playing a key role in the flow of capital across crypto markets. The fund was an aggressive borrower from large lenders, taking out billions of dollars worth of loans to fund its trading positions.
3AC owed 27 crypto companies $3.5 billion at the time of its bankruptcy, and its largest creditor was crypto brokerage firm Genesis. Founders Su Zhu and Kyle Davies have largely laid low in the months since the fund’s collapse, reportedly refusing to cooperate with the court-appointed liquidator Teneo overseeing the liquidation.
Teneo declined to comment on 3AC’s latest withdrawals, saying the restructuring firm is focused on advancing the liquidation process “to maximize asset recovery on behalf of all creditors.”
“During this time, it would be inappropriate to comment on speculation surrounding transactions that may or may not be related to Three Arrows or the ongoing investigations,” a spokesperson told Blockworks.
The marking of 3AC’s wallet by Nansen does not make it a certainty. In response to skepticism about the company’s labeling earlier, Nansen CEO Alex Svanevik noted in June “we can (but rarely) make mistakes – no one is perfect.”
3AC did not return a request for comment by press time.
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Shalini Nagarajan
Blockwork
Journalist
