Three Arrows Capital Owes $27M to Blockchain Development Lab Moonbeam

Three Arrows Capital (3AC), a crypto hedge fund that declared bankruptcy two weeks ago,  owes blockchain development lab Moonbeam Foundation over $17 million worth of stablecoins and $10 million worth of Moonbeam-issued tokens, according to recent court documents. 

The agreement between the two parties came on September 20, 2021, when 3AC borrowed the funds at a 12% interest rate. 3AC was also involved with Moonbeam as a liquidity consultant for Moonbeam's two tokens: Moonriver (MOVR) and Glimmer (GLMR). 

3AC held over 10 million in GLMR and 200,000 in MOVR. As of July 15, these have yet to be returned to Moonbeam. GLMR and MOVR are currently valued at $0.70 and $14.17 respectively, making the total value in tokens held by 3AC around $10 million, according to Bitpush Terminal data. 

According to their agreement as a liquidity consultant, 3AC’s objective was to make reasonable efforts to open up new markets for the tokens. 3AC was not responsible for the performance nor the trading volume of the tokens. 

Documents show that Moonbeam paid 3AC a sum of $90,000 for six months of 3AC’s consultancy. 

3AC’s troubles began when the Terra Network collapsed, sending their once valuable cryptocurrencies into a downward spiral, losing 99% of their total value in the course of several days. While one of their co-founders Kyle Davies said 3AC was able to manage that, it was the ensuing crypto market crash that finished them off. 

In late July, the crypto hedge fund was ordered to liquidate by a British Virgin Islands court. 3AC filed for bankruptcy in New York shortly after that. 

Author: Tyler Irvin

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