The case surrounding Three Arrows Capital (3AC) is on the rise again, with crypto investors claiming $1 million in funds suddenly disappeared from 3AC's accounts.
Previously, 3AC was rumored to have gone bankrupt, and its founder, Su Zhu, also deleted several posts related to non-Bitcoin crypto projects from his social media accounts.
Crypto Investors and Lost US$1 Million
According to a Crypto News report, the crypto investor is a crypto trading company called 8 Blocks Capital.
The company's head of trading, Danny Yuan, said that 3AC abruptly removed the funds without any notification. Danny claims that doing so violates an intercompany agreement, under which 3AC's co-founder, Kyle Davies, is also unreachable. For your information, 8 Blocks Capital is a company that uses funds from 3AC to become a market maker in the crypto market. 8 Blocks received fee rewards for more than one and a half years in the partnership. Danny also claims that, to date, their relationship is still mutually beneficial. Thus, the elimination of this fund is a surprising and unexpected thing.
According to Danny, the problem began to be noticed on June 12 and 13, when the crypto market fell again strongly. On that date, 8 Blocks had requested withdrawal of funds and on the following day, requests for withdrawal were not responded to at all. To his panic and surprise, Danny discovers that US$1 million has been lost from their account at 3AC. Kyle Davies was also unreachable afterward. After investigation, Danny finally found out that the funds belonging to his company had been used by 3AC to place leveraged long positions in many places. It also ended in a margin call, aka the funds ran out, because the market was falling hard. “For the most part, they [3AC] don't speculate on client money like Celsius. However, here they are using our US$1 million to cover their margin call,” Danny said in a tweet.
Danny also said that, even though 3AC experienced a margin call, they still had some assets left on several exchanges and trading platforms.
Danny also hopes that the authorities can freeze the remaining assets, so that 3AC will be able to repay the debt, after the legal process is underway.
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