Speculation has been running over the last couple of weeks that Three Arrows Capital (3AC) the major crypto hedge fund was going to enter liquidation. The biggest sign that the writing was on the wall was when Sam Bankman-Fried lent Voyager hundreds of millions of dollars to shore it up due to a 3AC loan that had gone bad. I wrote in-depth about this a couple of days ago here is a link to the article.

Since the hedge fund is based out of Singapore I am not entirely sure of the exact way this fund with be unwound. Yesterday though a court in the British Virgin Islands issued a court order forcing the company into liquidation. For this process, the company Teneo Restructuring has been brought on board to begin the process of tracking down and finding all of the assets that can be either liquidated into cash or returned to repay loans and other debt obligations. 

This process is going to be long and messy as tends to be the issue as different companies/individuals will claim priority over others owed money. While LUNA and UST were a huge part of the fund's demise two other investments hurt it as well. These were investments in Lido Staked Ether token, a protocol that allowed people to start staking their ether in preparation for Ethereum 2.0 which has been hit since the delay of the merge and Graystone Bitcoin Trust. Graystone was used to arbitrage the difference between the value of the trust and Bitcoin. Naturally, this investment has not paid off at all either and Graystone has even now launched a lawsuit against the SEC due to their continuous rejection of a Bitcoin spot ETF. 

A little-known thing that shows how big of a deal this is is that Teneo did not just send a couple of auditors to partake in this liquidation. Rather two executives for the company traveled to the British Virgin Islands to begin this process. I would assume this would be to make sure that this would be something that the company could handle and had the resources to undergo. The last thing anyone wants is for the liquidation company to get in over their head and cause a myriad of problems in the process leading to delays and "missing" funds. 

While the market has been down again today it is important to state that this is another huge failure in the industry and Bitcoin did not start to melt down again. It has done an incredible job of holding the line. With today marking the end of the first half of the year the stock market which crypto has been mirroring is set to have the worst performance it has had in decades. Across all sectors, markets are getting crushed due to the rapidly increasing inflation and the overall economic health. 

Please know I am not a financial advisor and make sure you do your own research! If you enjoyed this article and would like to further support me below are a few referral links that if you used when signing up I would appreciate it! Also, follow me on Twitter @Cje95_

Robinhood

Robinhood is offering a great signup deal if you use my link here where we will both be awarded free stock. All that you have to do is sign up and connect your bank account for the award! With commission-free crypto trading and the ability to set limit orders, it is a great hybrid offering in my opinion! Not to forget the addition of wallets and the ability to send and receive crypto!

Fold App

Offers daily wheel spins to win free sats daily! If you sign up for Fold with my link here you will get 5,000 sats for free!  

Unstoppable Domains

Sign up using my link here and get a free $10 credit towards your first $40+ purchase! 

Coinbase

Sign up for Coinbase and earn $10 of free Bitcoin when you buy or sell $100 in crypto with my referral here!

SMiles

If you are like me and walk to work every day this app rewards your walking with Sats! So far I have earned over 6,000 sats in just a couple of months walking to work! Here is my link!