Three Arrows Capital (3AC) owes billions to 27 cryptocurrency companies

Failed crypto hedge fund Three Arrows Capital (3AC) owes 27 cryptocurrency companies a total of $3.5 billion. The information comes from court documents published this Monday (18) by 3AC liquidators.

Three Arrows Capital owes to 27 cryptocurrency companies

The largest lender on the list is Genesis Asia Pacific Pte Ltd. According to the document, the company is a subsidiary of the Digital Currency Group (DCG), which lent $2.3 billion to 3AC.

Genesis CEO Michael Moro recently said that DCG has taken over some of Genesis’ responsibilities.

3AC had become one of the biggest hedge funds in the cryptocurrency industry. However, the company had a lot of exposure to the ecosystem Terra and this led to its bankruptcy.

Details of 3AC’s loans were revealed in a 1,157-page legal document released by Teneo, the company responsible for overseeing the liquidation of 3AC.

The document outlines the claims against 3AC, which filed for Chapter 15 bankruptcy in New York.

“Both DCG and Genesis balance sheets remain strong, with no remaining exposure to Three Arrows Capital. Genesis remains well capitalized and its operations continue to function normally”, highlights the group.

Voyager Digital LLC, which recently filed for bankruptcy, ranks second among creditors. As the document shows, the company provided a loan of $685 million to 3AC in the form of BTC and ETH.

Other high-profile 3AC lenders include, for example, DRB Panama Inc., the parent company of cryptocurrency exchange Deribit. The company lent 1,300 BTC and 15,000 ETH, worth around $51 million at current prices.

Celsius Network, which has borrowed about $75 million in USDC, is in fourth place. Then come CoinList Services ($35 million USDC) and FalconX ($65 million).

Kushagra Shrivastava, vice president of executive operations and partnerships at FalconX, declined to comment on the amount loaned to 3AC, saying only that he could not elaborate on specific customer relationships.

However, he said FalconX “had no material exposure or losses.” Furthermore, he has ensured that the average collateralization of the platform is over 160%.

“Unlike other major lenders in space, all credit on FalconX is supercollateralized,” he said.