Oh man, where to begin? It seems like every twelve hours, there’s some new major development in the DeFi space, specifically with one of the biggest crypto hedge funds, Three Arrows Capital.
Here’s a quick recap:
Popular cryptocurrency lending and high-yield platform Celsius paused all customer withdrawals earlier this month, stoking fears that it may be insolvent. The initial trigger was the collapse of the algorithmic stable (lol) coin, TerraClassic USD ($UST.X). The result has been a contagion of exposed cryptocurrency companies and platforms.
With Celsius at risk of bankruptcy, a leading investor group within Goldman Sachs ($GS) is reportedly circling the dying crypto firm and poking it with a stick to see if it’s dead yet. Goldman wants to raise $2 billion to scoop up Celsius’s assets on the cheap. However, another crypto lending firm, Nexo ($NEXO.X), already put in an offer last week.
Today, cryptocurrency platform/exchange/wallet Voyager ($VYGVF) served Three Arrows Capital a notice of default. Three Arrows Capital had until today to repay the entirety of a $650-ish million loan. Voyager did secure a $500 million Line of Credit from Alameda Ventures in the interim.
Also, Morgan Creek Digital wants to get in on the poking wounded crypto firms with a stick game. BlockFi ($BLOCKFI.P) got a $250 million credit line from crypto exchange FTX last week, with the latter having the reported option to acquire BlockFi at no cost. But, of course, Morgan Creek already has exposure to BlockFi, so if FTX exercised the takeover, Morgan Creek would literally be up Schitt’s Creek.
We’ll keep you updated to who wins out and who gets screwed. 🤬