Does Sam Bankman-Fried Own Everything Now: Recap Of Last Week's Top Crypto News

  • Written by Zero Hedge
  • Published in Economics
Does Sam Bankman-Fried Own Everything Now: Recap Of Last Week's Top Crypto News

By Donavan Choy of Bankless

Three Arrows Capital Contagion, Act III

The dominoes continue to fall from 3AC’s collapse. 

The fund was ordered into liquidation by a British Virgin Island court after failure to repay debts.

Singapore’s central bank MAS — where 3AC was previously headquartered — then stated that the fund willfully submitted false information on its balance sheets, and exceeded its allowed assets under management for several months.

The collateral damage from 3AC’s implosion has spilled over into other crypto companies, namely Voyager Digital and BlockFi.

Last week, Voyager halted withdrawals on its platform. This week saw Voyager issuing 3AC a default notice after the latter failed to make payments on a $670M loan.

Meanwhile, SBF’s Alameda Ventures stepped in with a $500M loan package to save Voyager, of which $75M has already been accessed. VOYG shares have taken a hit of ~60% in the past two weeks after news of its exposure to 3AC broke.

BlockFi’s troubles include an overcollaterized loan of $1B to 3AC, which was liquidated early on in the domino charge. In a public message released today, BlockFi reported a loss of ~$80M in the past month’s events, as well as a credit line of $400M from FTX (also an SBF joint) which to-date has not yet been drawn on.

Both FTX and Morgan Creek Digital are competing to acquire BlockFi, as BlockFi continues to pursue a public offering.

Current state of crypto contagion. pic.twitter.com/MDTpfweQNz

— Ape Digest (@ApeDigest) June 25, 2022

How 3AC ended up...

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