The NEXT Celsius?! 3AC Declares Bankruptcy…WHO IS NEXT? | Cryptocurrency News

The NEXT Celsius?! 3AC Declares Bankruptcy…WHO IS NEXT? | Cryptocurrency News

I want to share with you three of the biggest news stories happening in crypto trading, including 3AC I just filed for bankruptcy, what this means to you, is that what is currently happening with BlockFi was just announced yesterday, as well as keeping you updated on who is potentially next. What is more is that Jet-Bot is one of the fantastic opportunities to follow the best traders and track all of their trades via Binance trading bot. Jet-Bot has been launched since 2019. It offers a 3-day trial period. You don’t need to deposit fund to the platform and can connect your Binance account via API keys.

Three Arrows Capital Files For Bankruptcy (Chapter 15)

let’s jump in, starting with the latest news from 3AC. Three Arrows Capital filed for bankruptcy as of yesterday in New York tied to British Virgin Island proceedings. A British Virgin Islands court ordered Three Arrows BVI branch, British Virgin Islands branch, into liquidation earlier this week and now the bankruptcy has officially been filed. Here are the details.

3AC, a crypto hedge fund, filed for Chapter 15 bankruptcy, not Chapter 11, in the southern district of New York late Friday after weeks of speculation that it was functionally insolvent. Chapter 15 filings are generally tied to foreign proceedings. Of course, a court in the British Virgin Islands previously ordered 3AC’s local branch to enter into liquidation, indicating that Friday’s filing is likely tied to this.

What this means to you as a crypto holder? Is that 3AC is officially over? Just as a reminder of how many other companies they affected, 3AC borrowed large amounts of funds from several crypto lenders, including BlockFi, Celsius, Babel Finance, and Voyager Digital, but then they were unable to pay. Thus the contagion effect from the collapse of Tera Luna continued. This is interesting.

According to Bloomberg, the Chapter 15 filing will let the firm protect its U.S assets even after BVI’s assets are liquidated. So maybe not all has been sold yet, but in a direct quote from the filing on why they had to file for bankruptcy:

‘The Debtor’s business had collapsed in the wake of extreme fluctuations in cryptocurrency markets.’

This contagion effect might not be over. It’s possible to see the lasting effects of something like this in the months to come. We’re all still wondering how many other funds, how many other businesses are there? 3AC are affected, and Luna and Celsius are affected, but some of the language in this liquidation and paperwork is:

The NEXT Celsius?! 3AC Declares Bankruptcy

FTX To Acquire BlockFi (Official Fallout Explained)

Before we get to the latest rumors of potential insolvencies in the market, it is worth mentioning the current proceedings with BlockFi. As of yesterday, BlockFi officially announced a deal with FTX US, including an option to acquire for $240 million. So, according to the CEO of BlockFi, Zac Prince, BlockFi signed agreements with FTX US totaling $680 million for a company that had a $5 billion valuation in just June of last year.

So let’s go over the details of this because, in many ways, BlockFi was slash is in a much better position than those other crypto lenders, yet they still gave a loan to 3AC, and thus they’re not getting that money back. As of yesterday, they were affected by a thread from the CEO of BlockFi:

The NEXT Celsius
The NEXT Celsius?! 3AC Declares Bankruptcy tweet

So in total, what is FTX paying?

The NEXT Celsius?! 3AC Declares Bankruptcy tweet 1
The NEXT Celsius?! 3AC Declares Bankruptcy tweet 2

People were scared of Celsius, and they started to take that out on other companies.

The NEXT Celsius?! 3AC Declares Bankruptcy picture

They loaned out 80 million dollars, which now they’re not getting back. According to them, this represents the full extent of the impact of BlockFi from 3AC:

The NEXT Celsius?! 3AC Declares Bankruptcy image
The NEXT Celsius?! 3AC Declares Bankruptcy citatation

I like that they were proactive and took the money from FTX, but, of course, now FTX has some ownership in the company.

Voyager Digital Fail Continues..

This was confirmed yesterday, when Voyager Digital froze trading deposits, withdrawals, and rewards, blaming the 3AC default. Why this is interesting is that just earlier this week, as they filed a notice of default, they promised their customers that they would continue operations, and now they’re freezing almost everything.

In a direct quote from the CEO of Voyager, on why they halted withdrawals when they said they wouldn’t:

‘This decision, while far from optimal, will give us time to work to strengthen our balance sheet, a necessary condition to protect assets and preserve the future of the Voyager platform we’ve built together.’

 Of course, along with this, they also hired some councilors. In a statement issued by the company, it said it has engaged Moelis & Co. and the Concello Group as financial advisors, and Kirkland & Ellis as legal advisors. Wow, very surprising, especially considering what they just told us earlier in the week.

Voyager gave assurances just last Wednesday that they would continue operations. The exchange explained that it had access to $75 million of a revolving loan of 15 000 BTC that it had taken from Alameda Research to cover its exposure to the loans 3AC were unable to pay. They also said that they had $137 million in cash and cryptocurrency on hand. I don’t know what this seems like. I mean, I don’t know the inner workings of this exchange. It seems like if they thought that this would be enough money—hundreds of millions of dollars would have been enough money three days ago—why are they halting withdrawals and trading and rewards today? Voyager Digital did not indicate when it would restore trading deposits, withdrawals, and loyalty reward services, but we are now just waiting and watching.

Who’s Next?!

Next up, who’s next potentially, and I do just want to say these are just rumors. I have no knowledge of the inner workings of any of these companies, but it’s going around on Twitter:

The NEXT Celsius tweet
The NEXT Celsius tweet 2

First off, I had just assumed Sam Bankman Freed was talking about smaller exchanges like KuCoin, although they’ve always been a little sketchier because they’re not regulated like the coin bases or some of these US ones.

KuCoin is a pretty big exchange, and rumors were circulating. There were so many of them that the KuCoin CEO had to issue a statement. KuCoin’s CEO slams insolvency rumors, citing no plans to halt withdrawals. Here are the details.

We have prominent crypto figures on Twitter, such as trader @KongBTC and blockchain investigator @otteroooo, requesting that their followers withdraw all of their funds from KuCoin while claiming that the exchange will soon stop all withdrawals. Of course, the CEO of KuCoin responded on Twitter, saying:

The NEXT Celsius tweet 3

 The CEO then went on to provide receipts and evidence. While dismissing the alleged rumors in the above tweet, the CEO highlighted the company’s strong position by disclosing a recent $150 million funding, which placed the company’s valuation at $10 billion in May 2022, just a month and a half ago. He also pointed out that the company is currently hiring for multiple positions, requesting investors make their own judgment amid the ongoing fud. KuCoin also provided one more thing: further distancing KuCoin from the insolvency rumors, the CEO confirmed that the company’s 2022 H1 review report, which includes detailed information about their operations, would be shared. Finally, he sent out a warning to the people accusing KuCoin of shutting down services and creating panic among investors. He said it to those who intentionally spread unverified information, KuCoin reserves the right to take legal action. Don’t fud build all right.

In my opinion, unless you have an ongoing active copy trading crypto happening on the exchange, why keep your money on there anyway?

[This article is a transcription of a video made by Altcoin Daily]

Original video: https://youtu.be/SFbK7CHdQwM]