- Blockchain.com and Deribit confirm that they are creditors of Three Arrows Capital.
- Blockchain.com said it was cooperating with an investigation into the fallen hedge fund.
- Deribit said that it would remain financially healthy even if the debts weren’t repaid.
Blockchain.com and Deribit are among the creditors that sought the liquidation of beleaguered crypto hedge fund Three Arrows Capital. Bloomberg said that company representatives and a court filing showed that the two were creditors of the hedge fund, which fell into liquidation a few days ago.
Blockchain.com also said that it was cooperating with the investigations into the Three Arrows. A court in the British Virgin Islands made the liquidation order on June 27, appointing two partners at the consulting and advisory firm Teneo. The company spokesperson of Blockchain.com told Bloomberg,
“We believe Three Arrows Capital defrauded the crypto industry and intend to hold them accountable to the fullest extent of the law. We have filed for the immediate liquidation of all global assets of Three Arrows.”
Three Arrows capital was one of the most well-known crypto hedge funds, with billions in assets under management until the market crash. The firm was reprimanded by the Monetary Authority of Singapore for providing misleading information regarding the management of its funds and change in the company hierarchy.
The Deribit team confirmed that it had exposure to Three Arrows Capital. However, it reassured investors that there would be no issues with insolvency as it would remain financially healthy even if debts weren’t repaid.
All Eyes on Crypto Companies Now
The fall of several crypto companies has led to increased scrutiny on the crypto market. The market has dropped a long way from its lofty all-time highs, and bitcoin even sits under $20,000 at the time of publishing.
But some see this as a way of separating the wheat from the chaff. Dogecoin co-founder Billy Markus said that there were lessons to be learned from the fall of Celsius Network, Terra, and Three Arrows Capital.
Regulators and investors will now pay even more heed to the workings of crypto companies. The former will ensure that the companies have investor protection measures in place, while the latter will carry out better due diligence before participating in any platform. This market crash has burnt a lot of investors, and it’s likely to teach the many who entered during or after the last bull a lasting lesson.
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