Why 3AC’s Collapse Could Spell the Start of a Crypto Credit Crunch

Adam Cochran, partner at Cinneamhain Ventures, discusses the impact of 3AC’s impending liquidation. Show topics:

• why 3AC founders (and family members) are listing themselves as creditors
• what the “corporate veil” is and why it matters regarding 3AC
• where retail investors stand in the pecking order of creditors 
• why Adam doesn’t believe we know the full story about 3AC’s downfall, despite liquidators leaking a 1,000-page report about it
• what creditors might do with 3AC’s yacht
• why Adam is less worried about the health of GBTC in light of recent 3AC filings
• what effect 3AC’s fall will have on Genesis and Digital Currency Group
• why creditors might prefer liquidations to be paid out in equity compared to cash in this environment 
• how 3AC’s liquidation is impacting retail investors at Voyager and Celsius
• why there could be a crypto credit crunch coming soon

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Adam Cochran

• Twitter: https://twitter.com/adamscochran 

Coverage

• Adam Cochran Twitter thread on 3AC liquidation:
  • https://twitter.com/adamscochran/status/1543253799929876480
• Adam Cochran Twitter thread on 3AC contagion:
  • https://twitter.com/adamscochran/status/1546477191420170240
• 3AC founders subpoenaed
  • https://www.theblock.co/post/157141/bankruptcy-court-judge-gives-green-light-to-serve-subpoenas-to-3ac-fouSubpoenaedders-for-discovery 
• 3AC x Genesis relationship
  • https://www.theblock.co/post/158167/crypto-lender-genesis-lent-2-36-billion-to-three-arrows-capital
• 3AC owes creditors $3.5 Billion
  • https://www.theblock.co/post/158169/three-arrows-capital-3ac-creditors-list-3-5-billion-crypto-affidavits
• 3AC liquidation committee
  • ​​https://www.theblock.co/post/158279/three-arrows-capital-3ac-creditors-committee-five-members 
• 3AC x Blockchain.com relationship
  • https://www.theblock.co/post/158533/3ac-borrowed-and-repaid-more-than-2-billion-from-blockchain-com-before-outstanding-debt 
• Deribit liquidation dispute
  • https://www.coindesk.com/markets/2022/07/19/stake-in-crypto-exchange-deribit-becomes-disputed-asset-in-three-arrows-bankruptcy/
• 3AC x StarkWare
  • https://thedefiant.io/zhu-3ac-starkware/ 

Previous Unchained Coverage

• Wassielawyer on 3AC, Celsius, and Voyager
  • https://unchainedpodcast.com/three-crypto-bankruptcies-3ac-celsius-and-voyager-what-happens-now-ep-374/