Liquidators of Three Arrows Capital Say TerraForm Labs Owes It $1.3 Billion for Alleged Market Manipulation Liquidators of Three Arrows Capital (3AC) are seeking $1.3 billion from TerraForm Labs Pte. The claim alleges that TerraForm Labs manipulated the market for Luna and UST tokens, causing 3AC to suffer significant losses. Three Arrows Capital collapsed after the crash of Luna and TerraUSD, leading to the appointment of liquidators to recover assets for creditors.

Odaily Planet Daily News According to Arthur Cheong, founder and CEO of DeFiance Capital, he wrote an article on X platform reviewing the development history of the fund. Initially, Arthur personally invested less than $100,000 in cryptocurrency. In January 2020, Arthur decided to create DeFiance, a fund dedicated to DeFi. Initially, the fund's startup capital and committed capital were less than $2 million, but in March 2020, due to market changes, the plan was temporarily suspended. With the arrival of DeFi Summer, DeFiance's vision was validated, and the plan to establish the fund was continued, ultimately resulting in DeFiance being established with a size of less than $20 million. Arthur added that at the peak of DeFiance, its AUM exceeded $500 million, but was later impacted by the 3AC bankruptcy incident. When DeFiance launched its second fund, it encountered the FTX collapse. Until now, DeFiance is still resolving legal disputes with FTX regarding the first fund. The scale of the second fund at launch was lower than the first, and the market environment was more intense, but the AUM of the fund still rose eight times within a year.

According to Nansen's monitoring, Nyan Heroes has returned the initial investment of $600,000 for the 2021 seed round to Three Arrows Capital and provided an additional $300,000 to creditors. Previously, it was announced that Nyan Heroes completed a $2.5 million seed round of financing in November 2021, with lead investment from Three Arrows Capital, Mechanism Capital, and DeFiance Capital.

LayerZero CEO Accuses 3AC Co-Founder of Trying to Secure Treasury Allocation Days Before Collapse LayerZero Co-Founder and CEO Bryan Pellegrino alleges that Kyle Davies, co-founder of Three Arrows Capital, tried to convince LayerZero to allocate its entire treasury to the now-defunct hedge fund just days before it collapsed. Pellegrino claims that Davies promised better rates to LayerZero in a last-ditch effort. Davies, who has refused to apologize for the hedge fund's bankruptcy, did not respond to Pellegrino's allegations.

PANews reported on March 22 that, according to The Block, Bryan Pellegrino, co-founder and CEO of LayerZero, claimed that Kyle Davies, co-founder of Three Arrows Capital (3AC), had tried to induce LayerZero to entrust its entire financial resources to 3AC a few days before the collapse of 3AC, promising better interest rates than other borrowers. In addition, Pellegrino pointed out that when 3AC made this proposal, it was already financially unsound.

Odaily News Andrew Kang purchased the original Pepe NFT owned by original 3AC through Sotheby's auction house for an undisclosed amount. The NFT is the first Pepe NFT authorized by the first Pepe creator, Matt Furie. （The Block）

According to Scopescan data, the address marked "Teneo: 3AC Liquidation" at the beginning of 0xc7c currently holds a total value of $1.15 billion in crypto assets. Its WLD holdings are currently valued at $796 million (75 million), with other assets including: · 134 million STRKs, or about $309 million; · 8.437 million DYDX, or about $36.19 million; · 6.02 million USDC, etc.

According to the monitoring by Chain Shield, the 3AC liquidation party Teneo has transferred 34,750 USDC to the new address 0xc41ff...713c.

According to Scopescan data, the total value of crypto assets currently held by the 0xc7c marked as "Teneo: 3AC Liquidation" Address currently exceeds $950 million, mainly including: - 75 million WLD, or $665.25 million; - 134.17 million STRK, or about $250 million; -8.437 million DYDX, or about $28.855 million; -160,000 AXS, or about $1.282 million.

According to Scopescan data, as the price of WLD recovered and reached new highs, the 0xc7c at the beginning of the Address marked as "Teneo: 3AC Liquidation" currently holds a total value of more than $900 million in crypto assets, mainly including: - 75 million WLD, or $623.25 million; - 134.17 million STRK, or about $250 million; -8.437 million DYDX, or about $25.058 million; -160,000 AXS, or about $1.242 million.

According to Scopescan data, the total value of crypto assets held by 0xc7c at the beginning of Address, which is marked as "Teneo: 3AC Liquidation", currently exceeds $796 million, mainly including: - 75 million WLD, or about $509 million; - 134.17 million STRKs, or about $259 million; -8.437 million DYDX, or about $25.9 million; -160,000 AXS, or about $1.258 million.

According to Scopescan data, the 0xc7c labeled "Teneo: 3AC Liquidation" currently holds a total value of more than $591 million in crypto assets at the beginning of Address. Of these, WLD is worth $557 million (75 million), or about 94% of the Address's total assets. Other assets include: -8.437 million DYDX, or about $26.91 million; -5.75 million USDC; -160,000 AXS, or about $1.32 million.

British Virgin Islands Court Freezes $1.1B of 3AC Founders' Assets The British Virgin Islands court has frozen up to $1.1 billion worth of assets belonging to the founders of Three Arrows Capital, Su Zhu and Kyle Davies, as well as Davies' wife. The freezing order was made to prevent them from dealing with their assets worldwide, as part of claims made by the liquidators that allege the founders are responsible for causing the fund's position to deteriorate. A Singapore court also granted a domestic freezing order in connection with the case.

Three Arrows Capital co-founder Su Zhu faced his first trial in Singapore this week and responded to Teneo lawyers during a two-day court hearing. According to people familiar with the matter, lawyers are seeking details on how the fund collapsed and the whereabouts of its assets. Zhu will be released this month in accordance with standards of good conduct, the sources said. "The liquidators will pursue every opportunity to ensure that Mr Zhu fully complies with the court's order against him providing information and documents relating to 3AC and its former investment manager during and after his imprisonment and may apply for further court orders," Teneo said in September. (Bloomberg)

3AC co-founder Kyle Davies appeared in Bali as he was evading an investigation by Singapore authorities into the collapse of 3AC, and Cointelegraph sources involved in the case in Singapore said Davies' detention depended on the cooperation of Balinese authorities. （Cointelegraph） Previously, a Singapore court sentenced Su Zhu to 4 months in prison and issued a similar detention order for Kyle Davies, another co-founder of 3AC.

PANews reported on October 31 that, according to Bloomberg, Assistant U.S. Attorney Danielle Sassoon asked about SBF's relationship with Alameda during the trial. SBF admits to owning 90% of Alameda and was a billionaire for a while. Sassoon tried to ask if this meant that Alameda was an affiliate of FTX, but the defense objected. Prosecutors then asked if SBF was completely uninvolved in the 2022 Alameda deal. He replied: "It depends on how you define the transaction. I wouldn't say I wasn't involved in any way." SBF also acknowledges that some crypto companies have gained privileges at FTX. When prosecutors asked FTX customers if they could use their stake in outside investments as collateral for the exchange, SBF said a company called Crypto Lotus, which is affiliated with Three Arrows Capital (3AC), was allowed to do so. SBF also told the jury that Alameda has a $65 billion credit line on FTX, while the second-highest credit customer has $150 million. When asked by prosecutors "whether Alameda has more than $64 billion more credit than any other customer," SBF replied "yes." The judge again asked "whether Alameda has been allowed to exceed FTX's normal lending limit since the early days of FTX", to which SBF replied "I'm not sure". In addition, when prosecutors asked SBF "Did you decide to spend billions of dollars on venture capital decisions in 2021 and 2022," SBF responded, "I think billions of dollars were my decision."

Sam Bankman-Fried (SBF) admitted at trial that some crypto companies were given special privileges on FTX, and when Assistant U.S. Attorney Danielle Sassoon asked FTX customers if they could use their stake in external investments as collateral on the exchange, SBF said that a company called Crypto Lotus, which has ties to Three Arrows Capital (3AC), was allowed to do so.