Where in the world are Three Arrows Capital?
That's not our question.
That is from a US court and it's being asked as investors and customers are trying to get
their money back.
I'm Joel Flynn.
Welcome to The Daily Forkast, July 13th, 2022.
Strange things are happening with 3AC's crypto assets.
Celsius gets hundreds of millions of staked Ether back, but it may have missed out on
billions and Vitalik Buterin is getting caught up in a fight over security.
This is what's happening from Asia to the world.
Join thousands of NFT traders who already start their day on CryptoSlam.
They made big bets with money they didn't have and they disappeared.
Now that investors and customers want that money back, the founders of Three Arrows Capital
are currently nowhere to be found.
Save for a brief appearance on Twitter.
3AC is currently in the middle of bankruptcy proceedings in the United States, but some
strange things have been happening to its assets, and the people responsible for the
crypto mess aren't even close to cooperating.
Forkast Carolyn Wright reports.
Bankruptcy Judge Martin Glenn has given liquidators the authority to lay claim to three tax US
based assets, as well as issue subpoenas to both its founders and around two dozen banks
and crypto exchanges, which may have information about its assets and transfers.
That's an emergency hearing on Tuesday.
A lawyer for the liquidators said the whereabouts of founders Zhu Su and Kyle Livingston Davies
remain unknown.
Adam Goldberg explained that without their cooperation, liquidators have been unable
to establish a clear picture on the location of the fund's assets.
However, despite not appearing in court, Zhu Su came out of the woodwork yesterday, taking
to Twitter for the first time in a month to claim that their good faith offer to cooperate
was met with baiting.
Meanwhile, the first meeting of 3AC's creditors is due to take place on July 18.
No further details are available as yet at the dedicated 3ACliquidation.com Site.
However, citing a source with knowledge of the matter, the Block said the advisory firm
Teneo, which is hosting the meeting, may establish a board representing creditors as well as
announcing progress on the liquidation.
3AC filed for Chapter 15 bankruptcy on July 1, shortly after being ordered into liquidation
by a British Virgin Islands court.
That followed three arrows default on a US$670 million loan from Voyager Digital.
While Blockchain.com also recently said it is at risk of losing $270 million it loaned
to the firm.
I'm Carolyn Wright, Forkast.
Celsius is continuing its fight back from the brink.
More of its debts to AAVE have been paid off.
Another US$72 million takes the total repayments since the start of the month to US$400 million.
What's the big rush?
Well, the move gets Celsius access to $450 million of staked Ether - that is Ethereum
tied to the cryptocurrency after its transitions to proof of stake.
It comes after Celsius last week paid off debts to maker getting access to US$440 million
of wrapped bitcoin.
According to Zapper data, Celsius now owes just $60 million to DeFi protocols.
The big question, of course, what is it going to do with this collateral?
It comes as a prominent Celsius investor says the company lost a potential US$6 billion
bailout.
BnkToTheFuture boss Simon Dickson made the claim on YouTube channel CTO Larsson yesterday.
He said the deal fell apart because Celsius refused to show its financial records.
The company still hasn't resumed withdrawals since they were suspended on June 13.
Since then, employees have been laid off, restructuring lawyers hired and board directors
shuffled and reshuffled.
Forkast, of course, is where you will hear about the latest of what's going on at Celsius,
at Voyager, at 3AC.
Stay up to date with us by liking and subscribing to our YouTube channel.
Head to Forkast.News as well to find out what it means for you and for the market.
There's a link to that website in the description.
Now, when is a security not a security?
Well, it's a question at the heart of ethereum's merge and one that vitalik buterin isn't too
happy about.
The Blockchain's move from proof of work to proof of stake in August has got everyone
watching and tensions are brewing about how regulators might deal with it.
Forkast Lachlan Keller has more.
In a tweet, Swan Bitcoin managing editor Nick Payton claimed that the fact that you can
vote on something to change its properties is proof it's a security.
In a nod to the proof of work mechanism paid and signed off saying "Love Bitcoin".
Buterin clapped back, saying Paton was repeating an unmitigated barefaced lie and the voting
on protocol parameters is not included in either POS or POW.
Ethereum is scheduled to ditch its current POW mechanism in August by merging the POS
Beacon chain with the existing chain as a significant part of the long running transition
of Ethereum to POS and POW are both validation methods for networks.
In POW, the probability of mining a new block is determined by how much computational power
is done by the miner, whereas POS rewards miners according to how much they have staked
to the network.
Regulators being clamping down on the crypto space since the Terra Luna crash, with US
lawmakers proposing a bill that places emphasis on the classification of cryptocurrencies
as commodities or securities.
This isn't the first time the Buterin has stepped in to defend the proof of stake mechanism.
When Bitcoin fan and author Jimmy Song tweeted that POS doesn't provide decentralized consensus,
Buterin said anyone making an argument that something is dumb because of a one line technicality
is probably wrong.
I'm Lachlan Keller, Forkast.
Crypto startups in Asia could be set for more investment.
US venture capital firm Lightspeed has just raised half US$500,000,000.
It's putting that in a fund, focusing on India and Southeast Asia.
The money will go towards expanding early stage projects in the region.
Lightspeed is already a big investor in the blockchain and crypto space with Alchemy and
FTX among its portfolio.
All right, that's it for today.
There is more from us on Twitter @Forkast_Nnews.
There is a link to that below as well.
I'm Joel Flynn.
I'll see you next time.