Gate.io Blog Daily Flash | Markets Are Stagnant Amid Uncertainties, Three Arrows Capital Files for Bankruptcy in New York

Daily Flash | Markets Are Stagnant Amid Uncertainties, Three Arrows Capital Files for Bankruptcy in New York

04 July 13:16

Today's Headline - Three Arrows Capital Files for Bankruptcy in New York

Crypto hedge fund Three Arrows Capital filed for Chapter 15 bankruptcy in New York late Friday after weeks of speculation that it was functionally insolvent.

According to Bloomberg, the Chapter 15 filing will allow the firm to protect its U.S. assets even as its assets in the British Virgin Islands are liquidated.

The firm took several large amounts of loans from several crypto lenders, including BlockFi, Celsius, Babel Finance and Voyager Digital, but was Ultimately unable to pay. The lenders halted withdrawals or needed credit lines extended to remain afloat. According to a report from CoinDesk, a paper trail from 3AC has led to the revelation of a hidden legal entity that could potentially be shielding some assets from recovery.

The report says that 3AC operated an OTC trading desk called Tai Ping Shan Capital that was listed on LinkedIn as "the official OTC desk of 3AC”. Additionally, TPS held and traded most of Three Arrows’ treasury and it is “where the action was” for Three Arrows.

TPS Capital is located in the British Virgin Islands and registered in Singapore. According to corporate filings, TPS Capital has a hidden board of directors and a different ownership structure from 3AC. This complicates the recovery of funds for creditors due to the legal separation.

Chart of the Day - Bitcoin has lost around 57% in Q2 2022

Bitcoin has lost around 57% of its value in the second quarter of 2022. This is the worst quarterly performance since Q3 2011 when it lost around 68%. Ether was down 45% last month.

With the current US inflation rate standing tall at 8.6% and the geo-political unrest happening in Europe, investors have been forced into risk-averse defensive positions. The crypto space also spent much of Friday contending with the latest fallout from Three Arrows Capital's liquidity problems and Voyager Digital temporarily suspended all trading, deposits, withdrawals, and loyalty rewards.

As of this writing, Bitcoin was changing hands a little over $19.1K, and it’s roughly even over the past 24 hours. Bitcoin plummeted below $19K at one point on Thursday following the SEC’s rejection of two spot Bitcoin ETFs, a reprimand for troubled crypto hedge fund Three Arrows Capital and the latest revealing of pessimistic economic indicators.

Although Bitcoin has regained some of its losses, it is still trading below its monthly resistance level of $19.67K and it’s currently trading roughly 85% below the 200 weekly moving average.

Ether, on the other hand, was trading below $1,100 and showed minimal changes from the previous day. Other cryptos were mixed which reinforces uncertainties in the markets. MATIC was down roughly 7% during the same period.

Influencer of the Day - After Losing $60 Million in Bitcoin, El Salvador’s President Buys More

Unaffected by the huge losses incurred by his strategy of using public funds to invest in Bitcoin, El Salvador President Nayib Bukele announced on Saturday that he spent another $1.5 million to purchase 80 BTC at $19,000 per coin.

Before latest announcement, Bukele had invested about $104 million to buy 2,301 BTC at an average price of $45,171. Last week, when Bitcoin fell to $19,000, El Salvador’s Bitcoin holding was worth $43.72M, implying losses for the country of roughly $60.2 million.

Buzzes of Yesterday - #Meta to Shut Down Novi Crypto Payments, #VanEck Submitted Another Spot Bitcoin ETF Application

Israel’s regulator teases comprehensive crypto framework at ICC

EU Agrees on Hard-Hitting Crypto Regulatory Framework

Central African Republic Reveals Launch Date Of Crypto Initiative

India's Day Of Reckoning With ‘Most Controversial Crypto Tax’ Is Here

U.S. DOJ Indicts 6 People in 4 Crypto Scams Including Baller Ape NFT Rug-Pull

Meta to Shut Down Novi Crypto Payments Wallet in September

Facebook begins testing Ethereum and Polygon NFTs on profiles

VanEck Files Fresh Spot Bitcoin ETF Application

Wonderland Passes Vote To Invest $25 Million In Sifu Vision

MakerDAO members shoot down proposal for more centralization

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.

BTC/USDT -0.34%

ETH/USDT + 2.03%

MATIC/USDT + 2.05%

MKR/USDT + 5.18%

TIME/USDT 0.00%

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