The #3AC founder claimed that one of the primary causes of these errors is the proliferation of conventional financial concepts, such as "shadow banking" and the "internalization of procedures," in the financial sector.

Three Arrows Capital (3AC) founder Zhu Su recently addressed some of the reasons behind some recent errors in the #bitcoin market on Twitter. The 3AC founder said he agreed with how the bitcoin market is currently operating. Since there is no intraday market for funding the significant daily settlement imbalances that arise inherently in the system, it is claimed that #cryptocurrency investors are facing a financial catastrophe. On the other side, #crypto markets handle this far better.

The founder of 3AC, Zhu Su, responded to the comment on Twitter by claiming that the majority of recent errors in the cryptocurrency industry were caused by the adoption of antiquated concepts like "shadow banking" and "internalization of processes," that the next bull market will be fueled by investors who understand these problems, and that the underlying crypto infrastructure is a brand-new paradigm.

Nonetheless, some cryptocurrency specialists assert that, with a few modifications, these outdated ideas can still be applied in the world of digital assets. Others have suggested changing the definition of "shadow banking" to include the decentralized lending platforms that have gained popularity in the cryptocurrency space. The idea of internalizing processes can also be used in the blockchain environment, where smart contracts can automate a variety of formerly manual tasks.

It is obvious that the fusion of traditional banking and cryptocurrency is a popular topic in the industry. Some claim that traditional ideas have no place in the world of digital assets, but others argue that they may be modified to address the unique challenges and opportunities presented by cryptocurrencies and #blockchain technology. Lastly, the capacity of investors and innovators to strike a balance between the old and the new, incorporating the best practices of both sectors to create a more strong and resilient financial system, will decide the success of cryptocurrencies.

Kyle Davies, the founder of Three Arrows Capital (3AC), has been given two weeks to respond to court demands regarding the bankrupt fund’s books and records. This ruling came from the US bankruptcy court after Davies and his co-founder, Su Zhu, were accused of refusing to participate in bankruptcy proceedings.

According to the court’s ruling, the demand for court compliance was “in accordance with legal requirements and procedures.” Additionally, Davies and Zhu have been ordered to appear in court in the British Virgin Islands on May 22nd. Failure to comply with the court’s demands may result in a contempt of court charge.

3AC went bankrupt in June with a debt of $3 billion, and the collapse of 3AC contributed to similar failures from other cryptocurrency companies such as Voyager Digital, Celsius Network, and Genesis Asia Pacific.

It is worth noting that Genesis Asia Pacific is a part of the global company Genesis. As the court proceedings continue, many are left wondering about the fate of 3AC and the future of cryptocurrency companies. The current situation serves as a reminder of the importance of compliance with legal regulations, especially in the rapidly changing and uncharted territory of cryptocurrency.

This case also highlights the need for transparency and accountability in the management of investment funds. Investors trust fund managers to manage their assets with integrity, and the failure to do so can result in severe consequences for both the managers and investors.

As the legal proceedings continue, it remains to be seen how the court will rule and what impact this will have on the cryptocurrency industry. Nevertheless, this serves as a crucial reminder of the importance of following proper legal procedures and maintaining transparency in all financial transactions.

#3AC #crypto2023 #BTC #dyor #azcoinnews

This article was republished from azcoinnews.com

Here are the 7 most common mistakes that 99% of investors make that prevent them from accumulating great wealth.

Before starting, Follow us & Like this thread, for future reference!

1. Overestimating your Alpha

Sometimes we overestimate our alpha and just keep investing more and more.

Even if the project performs well, what's the benefit for you if you have not booked any profit?

2. Thinking you are early

If you really know whether you are early or not, then

-Follow on chain movement.

-Research about the project even before tokens are available.

3. A big VC invested

If you think that any project is backed by some big VCs, then it will not fail.

►Always remember that they are humans and can make mistakes too.

Ex- #3AC , #AlamedaResearch

4. Anonymous Founders

There are many projects that went to zero with anonymous founders.

It doesn't mean that if any project has a founder who is known publicly, that project won't fail.

But at least you can get to know about their background.

5. The project is audited.

Third-party firms review the code and give it a thumbs up.

But still, bad actors can exploit the code and drain the money from the project.

So don't just invest blindly in a project on that basis.

6. Dunning-Kruger Effect

We often think we are geniuses in a bull market and start to leverage more.

Remember, when people start to flex their #BTC and crypto gains, it's probably a top signal, and we need to exit the market.

7. No control over emotions

The market always transfers wealth from the impatient to the patient.

People often make investment decisions when they're emotionally unstable, which often results in huge losses.

Learn new things every day and do research on the way markets work.

Focus on making money, as the goal should be to be rich, not to look rich.

Meditate regularly to have better control over your emotions.

If you lost a trade, don't panic; sit back and analyze your trades rather than going #100x to make it all back in one trade.

And finally, don't be so harsh on yourself if you are not getting what you want. Remember, good things take time; great things take a little longer.

If you liked this thread:

1. Follow us for more such threads.

2. RT the first message to share this thread with your friends.

The owners of the bankrupt #3AC #crypto hedge fund launched the #OPNX exchange, whose Twitter account was deleted shortly after the exchange's first day of operation.

The new OPNX Exchange became operational on April 5, as noted in the post that was updated. This exchange is made for #trading #bankruptcy claims from declining crypto-institutions, like their insolvent hedge fund. It is unclear how bankruptcy pronouncements, which are extremely confidential and individualized, could be exchanged on a public exchange without the consent of bankruptcy trustees or the court.

CoinFLEX and FLEX tokens have been transferred to OPNX in accordance with the most recent bankruptcy reorganization plan. The "3AC brothers" exchange began accepting users and dispersing tokens on April 4.

Davies and Su chose to stick with the concept, nevertheless. The entire trading volume on OPNX for the previous 24 hours was $1.26 on the first trading day. OPNX quickly denounced the story, stating that the exchange's 24-hour trading volume was $13.64, or 982% greater than what was allowed. The following day, Su Zhu asserted that the exchange had facilitated $373 worth of trading.

Su Zhu said that the US authorities had shut down OPNX's official Twitter account at 3:00 PM on April 6 and included a link to the Chinese Telegram group. But he continued to withhold the precise reason.

Because the new project's goal was fundamentally flawed, it was frequently attacked and derided by the community. While creditors continue to demand roughly $3.5 billion from the founders of the 3AC hedge fund, they are working on their newest project.

This news is republished from https://coinaquarium.io/

The #bankruptcy claims exchange Open Exchange (OPNX), formed by Su Zhu, the creator of Three Arrows Capital, and others, got off to a shaky start, with only $13.64 in first-day trading activity. However, today, this figure has risen to more over $12,000, representing a 90,000% increase.

The exchange declared on Twitter that the fifth day's trading volume for #OPNX was $12,398. It is far better than the prior few days' performance.

OPNX had already been operational for 5 days. The exchange's Twitter account, which was set up by the founders of the insolvent #3AC #crypto hedge fund, was deactivated shortly after it went live. As stated by Su Zhu, the US government has shut down OPNX's official Twitter account, which includes a link to a Chinese Telegram group. He did not, however, specify why.

As stated by OPNX, claims trading for Celsius, FTX, and other estates will be available shortly.

The exchange would tokenize customer claims against insolvent bitcoin businesses, allowing them to utilize bankruptcy claims as collateral while trading indefinitely.

Under the most recent bankruptcy reorganization plan, CoinFLEX and FLEX tokens were transferred to OPNX.

The exchange also started granting monthly subsidies of up to $500,000. The OPNX Market Maker Program compensates eligible market makers for their liquidity with a $5,000 monthly stipend and a $50,000 to $500,000 bonus. The Market Maker Program is a well-known program that seeks to incentivize liquidity from certified market makers.

It is unclear whether this is the actual trade volume of this exchange, but in retrospect, it is a fairly low figure. A increase of more than 90,000% is meaningless since the exchange, when compared to other competitors, would not even reach the 200th position in terms of daily trading volume.

This news is republished from https://coinaquarium.io/

Former BitMEX CEO Arthur Hayes Criticizes 3AC Fund Relaunch

This report highlights the public criticism by Arthur Hayes, former CEO of BitMEX, directed towards Kyle Davis, regarding the relaunch of the #3AC fund. The fund had previously suffered significant losses due to the overall decline in the #cryptocurrency market.

Background of 3AC

In the first half of 2022, the 3AC fund experienced substantial losses as the broader crypto industry faced a market downturn. Numerous tokens witnessed significant declines, and investments such as #LUNA in which Three Arrows had a significant stake, nearly collapsed to zero.

Challenges Faced by the 3AC Fund

During the same period, a widening gap emerged between #Grayscale GBTC trust unit prices and spot Bitcoin prices, resulting in the trust units trading at a 34% discount to the trust's net asset value (NAV) in June 2022. This further added to the fund's difficulties.

The 3AC fund had previously managed a diverse portfolio consisting of various cryptocurrencies and blockchain projects. Investments included prominent projects like Aave, Avalanche, Luna, Ethereum, Solana, and others. However, the market downturn led to a substantial depreciation of the fund's portfolio.

Additional Concerns

In April 2022, Bloomberg reported that 3AC was planning to relocate its headquarters from Singapore to Dubai. However, it was later confirmed that the fund was not registered with the Dubai Financial Services Authority. This raised concerns about the fund's operations and management.

Relaunch and Partnership Announcement

Despite the challenges faced in the past, Kyle Davis recently announced the relaunch of the 3AC fund and revealed a new partnership with OPNX. The partnership aims to invest in projects within the OPNX ecosystem that contribute to building a decentralized future.

https://www.3acventures.com/

Arthur Hayes' Criticism

The relaunch of the 3AC fund drew public criticism from Arthur Hayes, the former CEO of #BitMEX Hayes, who himself had recently settled a legal case, expressed his disappointment with Davis' decision to relaunch the fund, implying that it was inconsiderate given the fund's previous failures.

$BTC $LTC $SOL

CryptosHeadlines.com - The Leading Crypto Research Network:

Kyle Davies, co-founder of Three Arrows Capital, revealed that he has renounced his U.S. citizenship, claiming that U.S. courts no longer hold jurisdiction over him.

The implications of this decision on the ongoing U.S. portion of the bankruptcy remain uncertain. A hearing on the matter is set for August 8.

Kyle Davies, co-founder of Three Arrows Capital, is attempting to avoid being held in contempt of court by arguing that he is no longer bound by U.S.

laws. In a hearing at the U.S. Bankruptcy Court for the Southern District of New York, Davies, who was born and raised in the U.S., stated that he renounced his U.S. citizenship in late 2020.

Consequently, he no longer considers himself under the jurisdiction of U.S. courts and refuses to subject himself to their authority.

Co-Founders of Failed Hedge Fund Resist Cooperation, Cite Renounced Citizenship

Background: Three Arrows Capital co-founders, Kyle Davies and Su Zhu, are facing efforts to liquidate their failed hedge fund and repay investors. Liquidators in the British Virgin Islands put the company under Chapter 15 bankruptcy protection in the U.S. to benefit from legal shields against creditors.

Claims of Cooperation and Withheld Documents: Davies and Zhu insist they have cooperated with the bankruptcy process, but liquidators overseeing the fund’s wind-down accuse them of withholding crucial documents for months.

Unusual Subpoena Approval: In December, a federal judge approved subpoenas of Zhu and Davies. However, this is the first time Davies has cited his renounced citizenship as a reason for not responding to the subpoena.

Contempt of Court: After Davies failed to respond, lawyers for the liquidators requested him to be held in contempt of court. This could lead to a potential $10,000 per day fine until he responds, along with covering the liquidators’ legal fees related to his refusal to reply.

Contempt Motion Filed against Kyle Davies for Lack of Cooperation

In June, an attempt was made to hold Kyle Davies in contempt following a New York Times profile featuring the co-founders of 3AC, who retreated to Bali after their investment fund’s collapse, costing investors billions. The motion emphasizes Davies’ active engagement with Twitter users about the situation while allegedly failing to cooperate with those handling the fund’s debt unwind.

Davies and his legal team argued that the court cannot enforce the subpoena against him as he is no longer a U.S. citizen. They point out a specific rule that prohibits serving subpoenas to individuals outside the U.S. who are not U.S. nationals or residents. Additionally, Davies claims the subpoena was not properly served as it was sent to his Singaporean lawyer, not directly to him.

The outcome of the ongoing U.S. portion of the bankruptcy remains unclear, with a hearing scheduled for August 8. Despite renouncing U.S. citizenship, U.S. financial regulators and criminal prosecutors may still pursue enforcement actions or indictment against foreign nationals involved in crimes in the U.S. or affecting U.S. citizens or entities.

Notably, 3AC faced investigations by regulators in late 2022, and their fund’s failure preceded other significant crypto collapses, such as FTX’s implosion.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#CryptocurrencyNews #NFT #Web3 #Blockchain #3AC