The drama surrounding the troubled crypto hedge fund Three Arrows Capital is continuing, with one trading firm now saying USD 1m was removed from its trading account by the hedge fund, and that Three Arrows Capital’s co-founder Kyle Davies can no longer be reached.
According to a Twitter
1) What happened between 3AC and us and what we know so far:@zhusu @KyleLDavies
— Danny (@Danny8BC) June 16, 2022
thread by Danny Yuan, the Head of Trading at Hong Kong-based crypto trading firm 8 Blocks Capital, Three Arrows Capital removed the funds without first informing them, in violation of an agreement between the two firms.
As a trading firm focused on market making in crypto markets, 8 Blocks Capital has traded capital from Three Arrows Capital in exchange for a fee for more than one and a half years, Yuan claimed in the thread. He added that the relationship has been “mutually beneficial” up until now.
After crypto markets started falling heavily on June 12 and 13, however, things got more difficult, the trader explained. He said his firm had requested a withdrawal on June 12, which was “honored”, but the next day, when they requested a larger withdrawal, Three Arrows Capital did not respond.
What happened next, according to Yuan, was that they discovered USD 1m was missing from their account with Three Arrows Capital. He added that attempts to reach the fund’s Operations Team and co-founder Kyle Davies were unsuccessful. “They didn’t pick up,” he said.
9) Then our traders noticed that there were a few rumors circulating on Twitter speculating on 3AC’s insolvency. Since we were directly involved, we felt the need to tell the world about what had occurred and gauge the extent of the 3AC contagion.
— Danny (@Danny8BC) June 16, 2022
The trader continued by saying that after being in touch with other people with “direct relationships” with Three Arrows Capital, they found out that the fund was “leveraged long everywhere and were getting margin-called.”
“Instead of answering the margin calls, they ghosted everyone. The platforms had no choice but to liquidate their positions, causing the markets to further dump,” Yuan said.
“>Danny8BC/status/1537224406308597762
He added that although Three Arrows Capital has gotten liquidated on many platforms, there are still assets owned by the firm left on some exchanges and trading platforms.
“We call for you to freeze their assets so that those who 3AC owes can be paid back in the future after legal proceedings,” the head trader said, adding: “you know who you are.”
The trader ended his Twitter thread by saying:
“Losing a bet is one thing, but at least be honorable and not drag others into your bets who have nothing to do with it. Certainly don’t ghost on everyone since potentially, they could’ve helped you.”
Cryptonews.com has reached out to Three Arrows Capital for comment.
Source: Cryptonews
