Daily Flash | Court Filing Revealed 3AC Owes Genesis $2.36B, Meanwhile Ethereum Bulls Are Eyeing $1700

Today's Headline - Genesis Files $1.2B Claim Against Three Arrows Capital

According to a 1,157-page court filing uploaded by bankruptcy trustee Teneo, Three Arrows Capital (3AC) owes a whopping $3.5 billion to 27 different companies—including Blockchain.com, Voyager Digital, and lender Genesis Global Trading.

Of that $3.5 billion total, Genesis—a company under Digital Currency Group—lent 3AC the most. It passed the now-insolvent firm $2.36 billion in a loan that was under-collateralized and had a margin requirement of 80%.

The loans were partly collateralized with 17.4 million shares of the Grayscale Bitcoin Trust (GBTC), 446,928 shares in Grayscale Ethereum Trust (ETHE), 2.7 million AVAX tokens and 13.9 million NEAR tokens – all of which have been liquidated by Genesis.

Russell Crumpler, Senior Managing Director at Teneo, stated:

“At this stage, it is unclear how the assets of the Company were dealt with by its founders and whether the assets of the Company were used toward the purchases that they have been making.”

Three Arrows Capital filed for Chapter 15 bankruptcy in the Southern District of New York on July 1. The firm’s troubles started when Do Kwon’s infamous Terra blockchain crashed, which has since caused a chain reaction of liquidations, bankruptcies, and financial troubles across the crypto industry.

Chart of the Day - Top 10 DeFi Projects by 30D TVL Growth

As of this writing,

Bitcoin (BTC) is changing hands at around $22,110, up 5.2% in the past 24 hours,
while Ether (ETH) is trading at $1,525, or up 11.4% during the same period.
Most major altcoins (SOL, ADA, DOT, AVAX) have also seen a range of gains between 5% - 10%.

Notable gainers include:
Polygon (MATIC) at $0.918 (+19.3%),
Ethereum Classic (ETC) at $25.6 (+21.4%),
NEAR Protocol (NEAR) at $1.72 (+18%),
The Sandbox (SAND) at $1.41 (+17%).

The leading moves by Bitcoin and Ethereum have pushed the total crypto market capitalization above $1 trillion for the first time since June 13, raising hopes that the worst of the bear market may be behind us. But like always, hope is overrated and hype is underrated.

However, the celebration will have to wait as the previous crypto market cap tipped the $3 trillion mark in quarter four of 2021, meaning $2 trillion has been lost.

According to analytics firm Glassnode, more than 80% of the total Bitcoin supply denominated in the United States dollar has been dormant for at least three months, which is a positive indication that HODLers are unwilling to sell at lower prices.

Bitcoin’s up-move has broken above the resistance line of the symmetrical triangle, indicating a possible trend reversal, while the relative strength index (RSI) has risen into the positive territory, indicating that the momentum favors the buyers. The bulls will now attempt to overcome the barrier at $23,363, according to Cointelegraph analyst Rakesh Upadhyay.

As for Ether, market participants are anticipating the Merge transition from a more energy-intensive proof-of-work to a more environmentally friendly proof-of-stake protocol. Buyers resumed their purchase on July 18 and pushed the price above $1,500. This suggests the start of a new uptrend and ETH could rally to the overhead resistance at $1,700 where the bears may pose a strong challenge. But like always, the merge may get postponed, so buyers beware.

Influencer of the Day - Stablecoin Provider Circle Released Full Disclosure On Asset Backing and CFO Jeremy Fox-Geen Expects Public Listing in Q4 This Year: Decrypt report

Last week, Circle highlighted that its USDC reserve is now held exclusively in cash and three-month U.S. Treasury bonds and is wholly separate from the firm's operations.

The total amount of USDC in circulation as of June 30 was 55,569,519,982 tokens, while reserve assets backing the U.S. dollar-pegged coin totaled $55.7 billion. Of this amount, Circle had $13.58 billion in cash at regulated U.S. banks, such as Silvergate Bank, Bank of New York Mellon, and Silicon Valley Bank, among others. Another $42.1 billion is currently held in treasury bonds.

As for the company's plans to go public via a SPAC deal signed last year with Concord Acquisition Corp., Fox-Geen told Decrypt:

"Although the timing of that is not in our hands, it is in the hands of the SEC; our current expectation is that we will emerge as a public company sometime in the fourth quarter of this year."

Buzzes of Yesterday - #Yuga Labs' Otherside Metaverse Released Demo, #Mining Costs of BTC Reached 10-month Low

300+ NFTs Stolen, $400K in Ethereum Taken In Premint Hack

140 Million Shiba Inu Burned as Burn Rate Spikes 137%

Over $150 Million Liquidated as ETH Price Skyrockets to a Monthly High

Otherside Metaverse Demo Kicks Off With 4,500 Participants

Lines Web3 Messaging Platform Raises $4 Million Seed Round

BTC mining costs reach 10-month lows as miners use more efficient rigs

Bitcoin Miner Marathon Digital Signs Multiple Hosting Deals to Reach Its Hashrate View

‘Crypto and DeFi Won’t Disappear’: Hong Kong Monetary Chief

US Treasury Open to Nonbanks Issuing Stablecoins, Official Says

Andorra has passed a law on digital assets allowing the State to launch its own token

Author: Gate.io Researcher Peter L.
This article represents only the researcher's views and does not constitute any investment advice. Gate.io reserves all rights to this article.
Reposting the article will be permitted provided Gate.io is referenced.
In all other cases, legal action will be taken due to copyright infringement.