The creditors of Three Arrows Capital may be left holding the bag, according to a source who claims the hedge fund's exposure to Deribit is only worth $25 million.
Court documents that describe the insolvency of failed crypto hedge fund Three Arrows Capital, also known as 3AC, may be overestimating the value of the firm’s remaining assets — specifically, its exposure to crypto options exchange Deribit. In a 1,100-page affidavit composed by liquidator Russell Crumpler and filed in a British Virgin Islands court, 3AC was described as “insolvent” and in need of being completely “wound up” because "Its management cannot be trusted to retain any remaining assets for the benefit of creditors." The documents also detailed 3AC’s remaining assets, which included shares of Grayscale Bitcoin Trust (GBTC), cryptocurrencies Bitcoin (BTC), Avalanche (AVAX) and Near (NEAR), and shares of Deribit.
