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Three Arrows Capital Co-Founders Eyed $50 Million “Much Wow” Yacht Before 3AC Pulled A Titanic

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Three Arrows Capital Co-Founders Eyed $50 Million “Much Wow” Yacht Before 3AC Pulled A Titanic

Summary:

  • Three Arrows Capital’s Su Zhu and Kyle Davies wanted to buy a Yacht worth $50 million, per reports.
  • The supposedly all-white luxury boat was to onboard the name “Much Wow”. a nod to popular meme cryptocurrency Dogecoin.
  • 3AC filed for bankruptcy the same month Much Wow was set to arrive and lift anchor.
  • The crypto hedge fund also has an outstanding debt with Voyager Digital at press time.
  • Liquidation proceedings led by Teneo Restructuring and a committee of claimants are underway, per reports

Su Zhu and Kyle Davies, co-founders of bankrupt crypto hedge fund Three Arrows Capital, planned to buy the most luxurious yacht in Singapore shortly before contagion spread through the cryptocurrency market and sunk the firm.

An NYMag story from Monday revealed that Zhu and Davies hoped to name their white boat “Much Wow”, a supposed inside joke and homage to meme coin cryptocurrency Dogecoin. The pair also planned to deploy their lavish vessel as a showroom for a large collection of non fungible tokens (NFTs), otherwise known as digital art or collectibles. 

However, the $50 million ship never set sail as Terra’s crash sent ripples throughout the crypto ecosystem. Three Arrows Capital later filed for chapter 11 bankruptcy in July 2022, the same month Much Wow was scheduled to lift its anchors.

Both co-founders went MIA around the same time as the bankruptcy claims reported the whereabouts of Zhu and Davies as “unknown”.

Su Zhu also made a real estate investment and bought a house in his wife’s name worth some $20 million, per NYMag’s report. According to other sources, Zhu has since attempted to sell off the house for around $35 million.

Three Arrows Capital Co-Founders Eyed $50 Million
Three Arrows Capital Co-founder Su Zhu

Three Arrows Capital Liquidation And Voyager Loan

Shortly after Terra crashed and Three Arrows Capital filed for bankruptcy, crypto broker and digital asset trading platform Voyager Digital disclosed that Zhu’s hedge fund owed about $650 million in Circle’s USDC stablecoin and Bitcoin (BTC).

Voyager followed up the news with a notice of default on the loan after 3AC failed to meet the repayment deadline. 

A British Virgin Island Court later ordered Three Arrows Capital to undergo liquidation. Teneo Restructuring was appointed to lead the effort while a committee was up on July 18 to oversee the process. 

Bloomberg released a report a few days later revealing that Zhu and Davies were en route to Dubai amid liquidation proceedings and supposed to death threats. The pair also commented that the 3AC incident was regrettable and that the firm planned for a market that never came.

Three Arrows Capital Co-Founders Eyed $50 Million
Three Arrows Capital Co-founder Kyle Davies (Source: Bloomberg)

FTX CEO Sam Bankman-Fried Comments On 3AC Debacle

Weeks later, 3AC’s liquidation continues and contagion remains in crypto despite the latest relief rally, per reports. FTX chief Sam Bankman-Fried opined that the 3AC tumble might have been the biggest event to rock digital assets so far in 2022.

I suspect they might be 80 percent of the total original contagion. They weren’t the only people who blew out, but they did it way bigger than anyone else did. And they had way more trust from the ecosystem prior to that.

Three Arrows Capital Co-Founders Eyed $50 Million
FTX CEO Sam Bankman-Fried (Source: Tom Williams/CQ-Roll Call, Inc via Getty Images)

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Celsius Network Will Hold Its Final Asset Auction On This Date 

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Celsius Network Will Hold Its Final Asset Auction On This Date 
  • Celsius Network is set to hold its final asset auction on October 17, 2022 
  • FTX CEO Sam Bankman-Fried is reportedly mulling over buying Celsius Network assets next week.

A recent court filing filed by Celsius reveals that the embattled crypto lender platform will conduct its final bidding session on October 17, 2022.

Celsius Is All Set to Host Its Final Auction Event 

Celsius Network has revealed a new timeline for its final auction event. The crypto lender platform will now be conducting its final bidding session on October 17, 2022, at 4:00 PM ET, alongside an auction, if necessary, on October 20, at 10:00 Eastern time.

Per the court filing filed with the US bankruptcy court for Southern New York, a sale hearing will be held on November 11, 1:00 PM ET, before chief US bankruptcy Judge Glenn Martin via Zoom.

Celsius Network, a prominent crypto lender platform, landed itself in troubled waters in July when the firm announced its decision to halt its deposits and withdrawals on the platform, citing extreme market conditions. The platform has received heavy criticism from the entire crypto community, which further spiralled out of control when the firm announced a deficit of 2.8 billion on its balance sheet.

In addition to this, Alex Mahinsky, CEO of Celsius Network, has recently submitted his resignation to the board. Mahinsky had reportedly withdrawn $10 million in the weeks before the firm halted deposits and withdrawals on its platform.

The auction, which is scheduled to go live on October 17, is said to be attended by a large number of interested parties. The CEO of FTX crypto platform, Sam Bankman-Fried, is also reportedly interested in purchasing the remaining assets of Celsius Network.

Last week, FTX.US won the first round of the Voyager asset auction by proposing a winning bid of $1.4 billion.

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Money Flowing Out Of Crypto Funds Is 666M Less Than Previous Quarter Indicating Bearish Investors Are Already Out: Bloomberg

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Money Flowing Out Of Crypto Funds Is 666M Less Than Previous Quarter Indicating Bearish Investors Are Already Out: Bloomberg
  • According to data from Bloomberg, money flowing out of crypto exchange-traded funds has slowed down by 97% in Q3 compared to Q2. 
  • Investors pulled $17.6 million from crypto ETFs in Q3 in comparison to a record withdrawal of $683.4 million from the ETF in Q2.

The second quarter of 2022 saw record withdrawals from crypto exchange-traded funds with a withdrawal of $683.4 million, which affected the price of Bitcoin and other cryptocurrencies. Bitcoin’s price has seen a 60% decrease that quarter, posting a record low of $17,785 on June 17 according to data from Coingecko.

Money Flowing Out Of Crypto Funds Is 666M Less Than Previous Quarter Indicating Bearish Investors Are Already Out: Bloomberg 12

Bloomberg data reports that Q3 of 2022 saw much fewer sales, indicating that capitulation may have occurred and bearish investors are now already out of risky assets such as BTC, Ethereum, and others.

ETF Strategist at Strategas securities stated for Bloomberg:

“I wonder if the second quarter was the ‘get me out part of these funds,”

According to Sohn, the third quarter may have been where the “laggards” and investors who had been “keeping the faith mentality” are now out.

Markets have declined in recent months as central banks have increased interest rates to curb inflation.

Bitcoin Witnessed An Increase In Volume This Quarter Against GBP

Bitcoin recently witnessed increased trading volume against GBP as the fiat currencies showed weakness. Bitcoin trading volume recorded an all-time high on Sep 28, 2022, as the UK’s fiat currency was threatened.

Bitcoin has been outperforming other major currencies in the past week, with a positive increase of 6.3%. Will this outperformance continue to hold, and are investors getting “orange-pilled” on Bitcoin while losing faith in fiat currency? This is something we will continue monitoring and see how it unfolds.

Money Flowing Out Of Crypto Funds Is 666M Less Than Previous Quarter Indicating Bearish Investors Are Already Out: Bloomberg 13

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Indian Crypto Exchange WazirX Lays Off 40% Of Its Staff Citing The Ongoing Crypto Winter: Report 

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Indian Crypto Exchange WazirX Lays Off 40% Of Its Staff Citing The Ongoing Crypto Winter: Report 
  • Indian cryptocurrency exchange WazirX has reportedly laid off 40% of its staff, Coindesk report adds
  • In a statement shared with the crypto news outlet, the exchange cites the prolonged crypto winter as its reason for slashing its workforce by 40%. 

Per a Coindesk report, Indian cryptocurrency exchange WazirX has slashed its workforce by 40%, citing the ongoing crypto market phase. 

WazirX Cuts 40% of Its Workforce

In a statement shared with Coindesk, WazirX, one of the leading cryptocurrency exchanges in India, has decided to lay off 40% of its staff, citing extreme crypto winter conditions. The company has reportedly laid off 50–70 people, three people familiar with the matter told Coindesk.

SimpleFX

SimpleFX

The statement later adds that these employees will be paid for additional 45 days, and after that, the workers are not expected to attend the company anymore.

WazirX, which is dubbed as one of the leading cryptocurrency exchanges in India, has cited the prolonged crypto winter as its primary reason, leading the firm to slash its workforce by almost 40%.

“The crypto market has been in the grip of a bear market because of the current global economic slowdown. The Indian crypto industry has had its unique problems concerning taxes, regulations, and banking access. This has led to a dramatic fall in volumes on all Indian crypto exchanges. ” The statement reportedly added

The firm further stated that it prioritises consumer protection and its decision to lay off 40% of its staff has been taken to “weather the ongoing crypto winter phase.”

“As India’s No. 1 exchange, our priority is to be financially stable and to continue serving our customers,” the company said. To achieve this, we’ve had to reduce our staff to weather the crypto winter. This situation is similar to the trying times the industry faced in 2018. At that time, we doubled down and built our innovative P2P engine. The crypto industry operates in cycles, and the bear market is inevitably followed by a spectacular bull market. We will continue to focus on our customers’ needs and continue to build. “We are confident that we will come out stronger when the bull market arrives,” the statement later adds

With WazirX slashing its workforce by 40%, the firm has joined the growing league of cryptocurrency exchanges that have recently decided to lay off their employees to stay afloat during the ongoing crypto winter phase. Crypto exchange Coinbase had earlier cut back on its workforce, citing the prolonged crypto winter. Similarly, exchanges like Bybit, Gemini, BitPanda, BlockFi, and Robinhood have also slashed their workforce to sustain the ongoing bearish crypto market phase.

Image: WazirX/Twitter

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