{"id":475709,"date":"2022-07-19T23:30:00","date_gmt":"2022-07-19T20:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/source-claims-3acs-deribit-exposure-is-worth-much-less-than-reported\/"},"modified":"2022-07-19T23:30:00","modified_gmt":"2022-07-19T20:30:00","slug":"source-claims-3acs-deribit-exposure-is-worth-much-less-than-reported","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/source-claims-3acs-deribit-exposure-is-worth-much-less-than-reported\/","title":{"rendered":"# Source claims 3AC&#8217;s Deribit exposure is worth much less than reported"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36cdf8b3c6b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36cdf8b3c6b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/source-claims-3acs-deribit-exposure-is-worth-much-less-than-reported\/#%E2%80%9D_Source_claims_3ACs_Deribit_exposure_is_worth_much_less_than_reported_%E2%80%9C\" >&#8221; Source claims 3AC&#8217;s Deribit exposure is worth much less than reported &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Source_claims_3ACs_Deribit_exposure_is_worth_much_less_than_reported_%E2%80%9C\"><\/span>&#8221; Source claims 3AC&#8217;s Deribit exposure is worth much less than reported &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvZTU3ZDRjY2UtYTFlMS00OWZiLWExZmMtZTA5Mzg0OGNjODdhLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-28d77a7a>Court documents that describe the insolvency of failed crypto hedge fund Three Arrows Capital, also known as 3AC, may be overestimating the value of the firm\u2019s remaining assets \u2014 specifically, its exposure to crypto options exchange Deribit.\u00a0<\/p>\n<p>In a\u00a01,100-page affidavit composed by liquidator Russell Crumpler and filed in a British Virgin Islands court, 3AC was described as \u201cinsolvent\u201d and in need of being completely \u201cwound up\u201d\u00a0 because &#8220;Its management cannot be trusted to retain any remaining assets for the benefit of creditors.&#8221; The documents also detailed 3AC\u2019s remaining assets, which included shares of Grayscale Bitcoin Trust (GBTC), cryptocurrencies Bitcoin (BTC), Avalanche (AVAX) and Near (NEAR), and shares of Deribit. Liquidators want access to these assets in order to facilitate creditors\u2019 claims, which are worth at least $2.8 billion. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Total claims right now are $2.8bn. Many have not made any claims yet, or quantified the amount of their claims for confidentiality reasons. Expect this figure to rise substantially as the deadline to make a claim is right up to the day before distributions are to be made<\/p>\n<p>\u2014 Soldman Gachs \u2310\u25e8-\u25e8 (@DrSold<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/anime-manga\/\" data-internallinksmanager029f6b8e52c=\"6\" title=\"Anime || Manga\" target=\"_blank\" rel=\"noopener\">manGa<\/a>chs) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/DrSoldmanGachs\/status\/1549236880532963329?ref_src=twsrc%5Etfw\">July 19, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nAccording to the affidavit, the Deribit shares are believed to be worth $500 million, or half of 3AC\u2019s remaining assets. However, a source with knowledge of the matter told Cointelegraph that the value of 3AC\u2019s Deribit shares is closer to $25 million rather than $500 million, suggesting that creditors will be left holding the bag on their loans to the failed hedge fund. <\/p>\n<p>According to the source, who chose to remain anonymous, the discrepancy between the two amounts is due to the type of exposure 3AC has to Deribit. They claim that 3AC does not directly own shares in Deribit but instead owns shares in a Singapore Special Purpose Vehicle (SPV) called 3AC QCP Deribit SPV. The largest shareholders of the SPV are 3AC and QCP Soteria Node, a holding company whose portfolio includes Algorand and PundiX, according to its website. The SPV\u2019s directors include QCP Soteria Node founder Sherwin Lee, QCP Capital co-founder Darius Sit and Three Arrows Capital co-founder Su Zhu.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Crypto Biz: 3AC\u2019s founders are nowhere to be found<\/em><\/strong><\/p>\n<p>The source further explained that the SPV owns over 23% of Deribit, making it the largest external shareholder. Of that total, 3AC owns 16%, making it the largest shareholder in the SPV. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Sadly, our good faith to cooperate with the Liquidators was met with baiting. Hope that they did exercise good faith wrt the StarkWare token warrants. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/CF73xI8r6n\">pic.twitter.com\/CF73xI8r6n<\/a><\/p>\n<p>\u2014 Zhu Su  (@zhusu) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/zhusu\/status\/1546801270014758912?ref_src=twsrc%5Etfw\">July 12, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>\u201cThe SPV shares are worth significantly less than direct Deribit shares due to several material encumbrances,\u201d the source said, adding: <\/p>\n<blockquote><p>\u201cThe owner of the SPV shares cannot sell or transfer the underlying Deribit shares without unanimous consent [&#8230;] This means that the owner of the shares will be stuck with the SPV. These are entrenched in SPV constitution.\u201d<\/p><\/blockquote>\n<p>The source claimed that QCP Soteria Node also has certain contractual powers, including the right of first refusal and tag-along rights, on 3AC\u2019s SPV shares based on a side letter agreement between the two parties.<\/p>\n<p>Over the course of several years, 3AC had been selling portions of its 16% stake through \u201cbinding side letters to numerous parties who are now claiming that they have an ownership on the 3AC SPV shares,\u201d they said. \u201cThere are at least four known parties who have these side letters and have put in their claims to ownership of the 3AC shares in the SPV. Some of them are on the liquidator&#8217;s official list of creditors.\u201d<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Liquidators can subpoena 3AC founders despite \u2018tricky issues\u2019 with crypto assets<\/em><\/strong><\/p>\n<p>The source claimed that a \u201csignificant discount\u201d would need to be placed on the value of their shares due to these underlying encumbrances:<\/p>\n<blockquote><p>\u201cA significant discount needs to be placed on the value of the 3AC SPV shares because any buyer of these shares would be subject to these encumbrances and would have significant difficulty monetizing the shares in the future and would also have to deal with the entire SPV which has close to 30 members.\u201d<\/p><\/blockquote>\n<p>Three Arrows Capital represents one of crypto\u2019s most significant falls from grace. Once the most revered hedge fund in the industry, holding over $10 billion in assets under management, 3AC began to implode in the wake of the Terra ecosystem collapse. Among its missteps was placing a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of large directional bets on GBTC, LUNA (now LUNC) and Lido\u2019s Staked ETH during the worst macroeconomic backdrop since the 2008 financial crisis.\u00a0<\/p>\n<p><em>Cointelegraph attempted to reach out to Three Arrows Capital on the matter, but did not receive a response prior to publication.<\/em><\/p>\n<p><em>Author\u00a0Joseph Hall\u00a0contributed to this story.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/source-claims-3ac-s-deribit-exposure-is-worth-much-less-than-reported\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Source claims 3AC&#8217;s Deribit exposure is worth much less than reported &#8220; Court documents that describe the insolvency of failed crypto hedge fund Three Arrows Capital, also known as 3AC, may be overestimating the value of the firm\u2019s remaining assets \u2014 specifically, its exposure to crypto options exchange Deribit.\u00a0 In a\u00a01,100-page affidavit composed by&#8230;<\/p>\n","protected":false},"author":1,"featured_media":475710,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvZTU3ZDRjY2UtYTFlMS00OWZiLWExZmMtZTA5Mzg0OGNjODdhLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[4978,117,71433,73711],"class_list":["post-475709","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bankruptcy","tag-business","tag-court","tag-investments"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/475709","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=475709"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/475709\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/475710"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=475709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=475709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=475709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}