The spring and summer months of 2022 will not be remembered not only because of extreme temperatures around the world but also because of an overwhelming series of big crypto companies breaking down. Terra Lab in May, Celsius in June and now, the enduring agony of Singapore-based crypto hedge fund Three Arrows Capital (3AC). Technically, a court in the British Virgin Islands ordered 3AC’s liquidation on June 27, but last week has seen some other developments around the company.
3AC liquidators are brutally demanding access to the company’s headquarters in Singapore due to “virtual radio silence from the company’s management/managers”. They believe the office may contain cold wallets or information on how to access 3AC trading accounts, which liquidators want access to before any of them are removed or destroyed. This desire is quite understandable, given the amounts loaned by creditors to 3AC – it seemed much larger than in previous reports.
The scandal surrounding the failed hedge fund grew to the point that the managing director of the Monetary Authority of Singapore (MAS) decided to publicly disavow the company’s ties to Singapore, claiming that 3AC (and TerraForm Labs as well) had “little to do with” crypto regulation in the country. Meanwhile, 3AC’s founders finally resurfaced after five weeks of not knowing their whereabouts. In an interview, Su Zhu and Kyle Davies acknowledged their problem with bull market overconfidence and revealed their closeness to Terra, which crystallized into a $500 million investment that went to zero.
New raids in South Korea in the wake of the collapse of Tira
As the investigation into Terra’s collapse continues, South Korean prosecutors have reportedly conducted a search and seizure of 15 companies, including seven crypto exchanges. The list included entities such as Upbit, Bithumb, Coinone, Korbit, and Gopax. Authorities reportedly obtained data on TerraUSD Classic (USTC) (formerly UST) and Terra (LUNA) – now Luna Classic (LUNC) – deals in which nearly 200,000 Korean investors suffered losses after the token’s sharp drop and subsequent crash. In May. .
Senior US officials will have to disclose the ownership of their NFTs
The US Office of Government Ethics (OGE) issued a legal advisory recommending various cases when senior government officials are required to disclose their investments in non-transferable tokens (NFTs). All NFT investments — F-NFTs (F-NFTs) and holdings — must be reported with a value of $1,000 if they are “held for investment or income generation” at the end of the reporting period.
SEC objects to XRP holders helping Ripple’s defense
The case against Ripple is still raging, and the US Securities and Exchange Commission (SEC) wants to prevent some “friends of the court” supporting Ripple from providing legal assistance to the defense. In its formal objection filed on Tuesday but dated June 7, the regulator challenged the decision to recognize 1,746 XRP holders as “friends of the court” along with attorney John E. Deaton. The latter holds 3,252 affidavits signed by the token holders, essentially stating that they are the victims of the SEC’s lawsuit against Ripple as a result of the loss of profits.