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3AC crypto founders flee as multiple crypto Ponzi schemes collapse

July 13, 2022 -

As we reported, 3AC failed to repay a loan on 15,250 bitcoins. And now that investors are trying to recoup their investments, the location of 3AC's top dogs is "currently unknown."

According to a court filing from Friday, July 8, Zhu and Davies have not yet begun to cooperate with the liquidation process "in any meaningful manner." This suggests that the criminal duo is on the run from creditors.

Ahead of a hearing that was scheduled for 9 a.m. ...

World’s largest bitcoin trust refuses to share proof of reserve audit

November 30, 2022 -

Following the implosion of FTX earlier this month and its subsequent bankruptcy proceeding exposing the depths of the company's mishandling of customer finances, multiple cryptocurrency companies have jumped to release proof-of-reserve audits.

A proof of reserve audit is a way for both clients and potential investors to prove that an independent auditor studied and proved the state of an exchange or business' reserves. In the wake of FTX's collapse, this served as the ...

Crypto lender BlockFi blocks withdrawals as FTX declares bankruptcy

November 16, 2022 -

With FTX announcing its plans to file for bankruptcy on Friday, Nov. 11, BlockFi announced via Twitter on the same day that it is "stopping client withdrawals" because of a "lack of clarity" regarding the fate of Sam Bankman-Fried's crypto exchange empire.

More precautionary actions could be expected from BlockFi, which admitted in a statement on Monday, Nov. 14, that it also has significant exposure to FTX. BlockFi has also instructed clients not to submit any deposits, ...

The crypto geniuses who vaporized a trillion dollars. Everyone trusted the two guys at Three Arrows Capital. They knew what they were doing — right?

October 15, 2022 -

(Article by Jen Wieczner republished from NYMag.com)No matter that they had originally told friends they were shopping for a $150 million vessel; the superyacht was still the largest by well-established boat builder Sanlorenzo ever to be sold in Asia, a triumph of crypto’s nouveau riche. “It represents the beginning of a fascinating journey,” the yacht broker said in an announcement of the sale last year, saying it looked “forward to witnessing many happy moments aboard....

CRYPTO CON: Disgraced Three Arrows Capital crypto hedge fund co-founders have a long history of questionable activities

August 16, 2022 -

In a piece for The New Yorker entitled “The Crypto Geniuses Who Vaporized a Trillion Dollars,” writer Jen Wieczner takes a closer look at these shady figures and how they managed to get it so wrong. Although the pair attended the same ritzy boarding school, they didn’t end up becoming friends until their time together at Columbia University. They both ended up working in Tokyo at Credit Suisse afterward, and then Zhu moved on to Flow Traders, where he picked up the art of arbitrage ...

NYDFS fines Robinhood’s crypto division $30M over anti-money laundering and cybersecurity-related issues

August 09, 2022 -

Robinhood, a financial services company that facilitates commission-free trades of stocks, exchange-traded funds and cryptocurrencies via a mobile app, said last year that it will pay NYDFS a $30 million settlement after a 2020 investigation about those issues.

NYDFS, the government branch responsible for regulating financial services and products, alleged that the financial services company's anti-money laundering and cybersecurity program failed to transition from manual ...

Another cryptocurrency firm tanks, files for bankruptcy protection and takes life savings of thousands of people with them

July 29, 2022 -

Last week, crypto lender Celsius Network, which was already suffering from a massive cash shortage, filed for Chapter 11 bankruptcy protection in the Southern District of New York -- an action that came after a similar filing in the same court by crypto broker Voyager Digital. Both firms' filings came weeks after they paused customer withdrawals, citing "extreme market conditions."

Voyager Digital's filing was largely in response to the failure of crypto hedge fund Three ...

California regulator to investigate crypto companies for not disclosing risks of crypto lending activities

July 26, 2022 -

Without naming which companies, the DFPI stated that multiple businesses engaged in providing interest-bearing cryptocurrency accounts are being investigated to determine whether they are violating laws under the department's jurisdiction. (Related: Founder of fraudulent crypto CONVICTED for stealing over $6 million from investors.)

In a recent statement, the DFPI noted that crypto-interest account providers "are not governed by the same rules and protections as banks and ...

Founder of fraudulent crypto CONVICTED for stealing over $6 million from investors

July 24, 2022 -

The Department of Justice said Crater, 51, offered virtual payment services through his fraudulent digital currency. (Related: "Cryptoqueen" becomes first crypto criminal on FBI's top 10 most wanted.)

My Big Coins were marketed to investors between 2014 and 2017. Crater and his associates falsely claimed that the cryptocurrencies were backed by $300 million in gold, oil and other assets. They also falsely marketed themselves to potential investors by claiming that My Big ...

Collapse continues as massive crypto hedge fund goes bankrupt, ruining investors

July 19, 2022 -

The latest crypto-casualty is Three Arrows Capital.

As recently as March, the company managed around $10 billion in assets, which positioned the firm as among the most prominent crypto hedge funds on the planet.

But now, the company also known as 3AC is headed to bankruptcy court following the steep decline in cryptocurrency prices amid a volatile, risky trading strategy that combined to decimate its assets and leave the firm unable to repay its lenders, ...

Crypto broker Voyager Digital suspends customer trading, deposits, withdrawals and loyalty rewards

July 07, 2022 -

Voyager's move follows that of well-known crypto staking and lending platform Celsius, which likewise halted all withdrawals, swaps and transfers between accounts due to "extreme market conditions" on June 13. Celsius has yet to declare tangible guidance on its next moves.

"This was a tremendously difficult decision, but we believe it is the right one given current market conditions," said Voyager CEO Stephen Ehrlich.

Ehrlich added that the decision is designed to ...

Bear market effect: Crypto miners face margin calls as debt mounts

July 06, 2022 -

Bear market is the term used to describe a sustained period when the equity markets are down at least 20 percent from their recent peaks. Maintenance call, on the other hand, refers to a call to an investor for additional funds when the market value of securities in the investor's margin account has fallen to the point that the investor's equity does not meet an established minimum.

Data compiled by CoinDesk and industry participants shows that private and publicly listed ...

Major crypto hedge fund Three Arrows Capital files for bankruptcy and fires 25% of workforce as crypto implosion spreads

July 04, 2022 -

Rumors that the embattled fund was in trouble started gaining steam early last month, and it was hit hard by the collapse of the Terra crypto and other issues. A court order in the British Virgin Islands ordered their liquidation after they defaulted on a loan worth $660 million to crypto brokerage Voyager Digital.

In the last few days, the company has brought on Teneo Restructuring to help with the liquidation process. Sources reported that they had entered the early stages ...

Cryptocurrency collapse continues: Prominent crypto hedge fund defaults on $670 million loan

June 30, 2022 -

As reported by CNBC, major crypto hedge fund Three Arrows Capital has defaulted on a loan worth more than $670 million in the latest disaster for the new-age currency, even as Bitcoin and other prominent cryptos continue shedding their value.

"Digital asset brokerage Voyager Digital issued a notice on Monday morning, stating that the fund failed to repay a loan of $350 million in the U.S. dollar-pegged stablecoin, USDC, and 15,250 bitcoin, worth about $323 million at today’s ...

CRYPTO CONTAGION: Three Arrows Capital defaults after failing to make required payment on loan of 15,250 bitcoins

June 29, 2022 -

Another domino to fall in the cryptocurrency collapse contagion, 3AC will now have to work with Voyager's advisors to come up with a plan for recovery. Voyager says it fully intends to pursue 3AC for what it owes, and is in talks right now to discuss available legal remedies.

As of this writing, the Voyager platform is still fully operational and the company is fulfilling orders and withdrawals as normal. As of June 24, Voyager had about $137 million in ...