By Richard Hines
The infamous crypto firm, Three Arrows Capital (3AC) that declared bankruptcy after bitcoin surged to $21,000 received $1 million in ETH from one of its exchanges. This revelation calls into question the authenticity of the 3AC’s management’s declaration about not having enough finances to repay their investors.
Huge Transactions Amidst Bankruptcy
In July, the two co-founders of Three Arrows Capital, Kyle Davies and Su Zhu, expressed their sadness over the massive loss of funds caused by Bitcoin’s crash from last November to early this year. However, both founders refuted all claims of taking profits before the market crash.
After declaring bankruptcy, the corporation made it obvious and open to the public that it had no reserves to settle its liabilities. However, investors soon discovered Zhu’s $50 million yacht and multiple Singapore homes that could have been sold to pay back and recoup all losses caused by the bitcoin crisis.
A spotted transaction from the OKX exchange using a 3AC wallet indicates that the co-founders misled the public and may have stashed crypto assets in a private cryptocurrency wallet under a pseudonym or anonymously.
Decentralization’s Anonymity Problem
The concept of decentralization makes it difficult to discern how much money or assets one has left and whether assets have been saved on a personal ledger. This has kept them anonymous and made all accusations without substantial proof, crippling any cause of action that might be taken against the firm.
Following the transaction of 660ETH to the 3AC wallet, another 990ETH was transferred from a 3AC wallet to a newly formed ethereum wallet. However, the motives behind these transactions are unknown. Users are speculating that the team is attempting to spread these funds throughout wallets in order to complicate the retribution procedure.
At the time of writing, the 3AC wallet contains 49ETH and $1.5 million in other tokens. They have however not made any statement about a retributtal to the public after the bankruptcy filed earlier.