Court Document Reveals Three Arrows Capital Owes Whopping $3.5B

• A new court document revealed who Three Arrows Capital owes to.
• Digital Currency Group, parent company of Genesis, was owed $1.2B.
• Document also shows 3AC owes co-founder Zhu Su and wife of co-founder Kyle Davies.

Three Arrows Capital (3AC) unveiled in a new court filing that the crypto hedge fund owes $3.5 billion to 27 different companies. 

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Earlier this month, 3AC filed for Chapter 15 bankruptcy that enables cooperation between international and US court systems. The filing aims to protect the debtor’s assets amidst trading suspension from several crypto lending firms.

According to the court document, 3AC owes to companies and individuals including crypto lending firm Genesis Global Trading, Celsius Network, Voyager Digital, and more.

Crypto lending firms such as Voyager Digital and Celsius, who both filed for bankruptcy proceedings, had been incorporated to 3AC. The document revealed that 3AC owed $674 million to Voyager Digital, who halted withdrawals due to the crypto crash. Voyager also notified that all user’s assets could not be retrieved and it will depend on how much 3AC will pay them.

Celsius Network was owed $40 million by 3AC. Yet, the crypto lending firm has a far more larger problem as the company has a financial deficit of around $1.79 billion.

Digital Currency Group, the parent company of crypto brokerage Genesis, was the biggest creditor to 3AC. The company filed a $1.2 billion claim against 3AC. 

Furthermore, 3AC’s liabilities did not stop with these companies. The document also shows that 3AC owes members of its company, including co-founder Zhu Su who claims that he should receive $5 million from the bankruptcy proceeds. The wife of 3AC co-founder Kyle Davies, Chen Kaili Kelly, also owed $65.7 million according to a report from Bloomberg.

The company’s executives were now dealing with several queries from the regulators in Singapore and are keeping a low profile due to threats from angry investors.

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