Three Arrows Capital Owes Genesis $2.36 Billion: Court Filings Reveal Shocking Debt
The crypto world is still reeling from the collapse of Three Arrows Capital (3AC). Recent court filings have shed light on the massive debt accumulated by the now-defunct hedge fund, with a staggering $2.36 billion owed to Genesis Asia Pacific, a subsidiary of Digital Currency Group. This revelation confirms earlier suspicions and highlights the significant impact of 3AC's downfall on the wider crypto market.
Collapsed crypto hedge fund Three Arrows Capital (3AC) owed 27 crypto companies $3.5 billion, according to court documents published today by 3AC's liquidators. These documents, including a massive 1,157-page filing uploaded by bankruptcy trustee Teneo, detail the extent of 3AC's liabilities.
According to The Street, 3AC’s biggest creditor, trader Genesis Asia Pacific, a subsidiary of Digital Currency Group, loaned 3AC $2.36 billion. Crypto lender Genesis gave 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 Three Arrows Capital (3AC) owes a whopping $3.5 billion to 27 different companiesincluding Blockchain.com, Voyager Digital, and lender Genesis Global.
Crypto lender Genesis is said to have lent Three Arrows Capital a loan worth $2.36 billion, according to a filings document. Genesis CEO Michael Moro had earlier this Court documents highlighted the 27 companies that Three Arrows Capital owed money to. The highest amount lent by any of them came from Genesis at $2.36 billion. According to a 1,157-page court filing uploaded by bankruptcy trustee Teneo, Three Arrows Capital (3AC) owes a whopping $3.5 billion to 27 different companiesincluding other major players.
The fallout from 3AC's collapse continues to unfold, with Genesis bearing the brunt of the losses. The $2.36 billion debt represents a significant blow to the company and underscores the interconnectedness and potential risks within the decentralized finance (DeFi) space. The court filings provide valuable insights into the financial mismanagement and excessive leverage that contributed to 3AC's demise.