Wednesday, June 19, 2024

Three Arrows Capital wallet removes $33 million staked ETH.

Bankrupted hedge fund Three Arrows Capital (3AC) wallet has removed $33 million in Staked ETH (stETH) from Curve Liquidity Farming Pool. It also removed 200 Bitcoin, $4 million worth of Tether (USDT), and $4 million in wrapped Ether (wETH) from Convex – a DeFi platform.

The company filed for bankruptcy in July following the collapse of the algorithmic stablecoin TerraUSD. 3AC had invested $200 million in a $1 billion sale of LUNA cryptocurrency. The funds went into the Luna Foundation Guard for TerraUSD’s peg to the US dollar. The hedge firm’s holdings were wiped out when TerraUSD and Luna collapsed. Kyle Davies, the co-founder of 3AC, said the company could absorb the loss at the time.

Now Three Arrows Capital wallet’s withdrawal is unclear. It should be noted that stETH can be redeemed for ETH between six and twelve months after the Ethereum network transactions from proof-of-work (PoW) to proof-of-stake (PoS). One can also use Curve which has a liquidity pool for trading between stETH and ETH. But this has become unbalanced with more stETH than ETH. 3AC, by removing funds from Curve, could be preparing to borrow ETH against the collateral of its stETH to make the company eligible for the airdrop of a new token from a fork of the Ethereum blockchain. If not, it would need to wait until the stETH can be retrieved for ETH after the Ethereum Merge.

A Singapore court had granted 3AC’s liquidators Teneo permission in August to access the company’s financial records to shed light on the location and availability of any remaining funds. The crypto assets that were earlier used to provide liquidity could form part of 3AC’s remaining assets.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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