In the world of crypto, there’s no such thing as “too big to fail.” Three Arrows Capital, once the most recognizable hedge fund in the industry, has essentially gone belly-up after its founders believed their own hype and decided to goduring the worst macro climate of a generation. Since the proverbial shit hit the fan last month, founders Kyle Davies and Su Zhu have kept a very low profile. So low, in fact, that their whereabouts remain a mystery, according to court documents.
This week’s Crypto Biz chronicles the latest developments surrounding Three Arrows Capital and explores Grayscale’s legal proceedings against the United States Securities and Exchange Commission (SEC).
Liquidators can subpoena 3AC founders despite ‘tricky issues’ with crypto assets
We may not know the whereabouts of Kyle Davies or Su Zhu, but that won’t stop liquidators from subpoenaing the founders of bankrupt Three Arrows Capital, also known as 3AC. Earlier this week,issued an order giving 3AC liquidators permission to demand that the founders attend court. Apparently, Zhu and Davies haven’t been cooperating with their liquidators. this week by alleging that the liquidators “baited” his firm. Whatever that means.
Sadly, our good faith to cooperate with the Liquidators was met with baiting. Hope that they did exercise good faith wrt the StarkWare token warrants.
— Zhu Su (@zhusu)
Grayscale legal officer says Bitcoin ETF litigation could take two years
Grayscale’s quest for a Bitcoin () exchange-traded fund (ETF) could get more complicated as the asset manager embarks on suing the SEC for denying its latest application. Specifically, Grayscale is trying to , but securities regulators won’t let them because of “concerns” about manipulation in the spot BTC market. Craig Salm, Grayscale’s chief legal officer, said the before a resolution is reached. Who knows, by that time, the SEC may decide to waive its magic wand and approve another spot Bitcoin ETF.
Multicoin Capital raises $430M for new crypto startup fund
Crypto venture funding has slowed in recent months, but that hasn’t stopped major firms from continuing to raise serious capital. Prominent investor Multicoin Capital announced this week that it hasto bootstrap crypto and blockchain startups. The firm’s new “Venture Fund III” will allocate between $500,000 and $25 million to early-stage companies, with an increasing focus on decentralized autonomous organizations, the creator economy and consumer-facing products. 2022 is shaping up to be the biggest funding year ever for crypto.
Playboy to launch first ‘MetaMansion’ in The Sandbox
Iconic lifestyle brand— and doing it tastefully, too. The company behind your dad’s favorite raunchy magazine has launched its , giving users access to a virtual version of the Playboy mansion. If you decide to pay a visit to the virtual property, you’ll be able to attend a host of gaming and social events and possibly collect in the future. Apparently, the MetaMansion builds on Playboy’s Rabbitar NFT project, which is comprised of 11,953 tokenized bunny avatars.
Anybunny home? We’re teaming up with none other than….! ♀️
Together, we will be creating a Playboy MetaMansion social game insidewith collectibles & special experiences for the Rabbitar community!
— The Sandbox (@TheSandboxGame)
Don’t miss it! Why are crypto platforms going bankrupt?
The cryptocurrency market may never be the same after 2022 — and that could be a good thing or a bad thing. With companies like, and filing for bankruptcy, investors are worried about what comes next. Is your crypto safe being held on exchanges or lending platforms? In this week’s , I sat down with fellow analysts Jordan Finneseth, Marcel Pechman and Benton Yaun to discuss how the recent wave of bankruptcies will impact the market.
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