Cryptocurrency
The founders of crypto fund Three Arrows Capital are missing
![](https://letizo.com/wp-content/uploads/2022/07/bankrupt-crypto-firm-three-arrows-capitals-assets-frozen-bynew-york-judge_62ce5f227ffa2.jpeg)
The founders of crypto fund Three Arrows Capital are missing. They are being sought for the company’s bankruptcy filing.
Three Arrows Capital (3AC) was once the largest crypto fund and one of the most popular companies in the industry, but by today it has almost completely lost its management vertical.
Three Arrows Capital’s problems became known in mid-June. Then, sources reported that the positions of the cryptocurrency fund were liquidated by the exchanges FTX, Deribit and BitMEX, due to which the position of the organization significantly deteriorated. At the same time, 24 hours later, sources also told about the disappearance of Soo Joo. As reported on June 18, the entrepreneur did not get in touch with the staff of the fund.
What’s going on with the 3AC crypto fund
The exact whereabouts of foundation founders Soo Joo and Kyle Livingston are currently unknown. They haven’t made any public statements, even on their social media accounts, for quite some time.
Some of the lawyers in the Three Arrows Capital bankruptcy case fear that the missing Zhu and Livingston may now try to sell the fund’s assets outside the debt liquidation process.
There is a real and unavoidable risk that the fund’s debtor’s assets could be transferred or otherwise disposed of by parties other than court-appointed foreign representatives to the detriment of the debtor, its creditors and all other interested parties.
The representatives of the law are trivialized. Since it is impossible to establish the location of the co-founders of the crypto-fund, it is also impossible to predict the future course of events.
Statement of problems with the liquidation of the debt 3AC
Liquidators noted that due to the nature of 3AC’s business, “risk is heightened” because cryptocurrencies are “easily transferable.” Lawyers should facilitate “an orderly winding down of the company’s operations and begin liquidating its assets.” The missing co-founders of the company were filed with the court on Friday, July 8. One of the liquidators, named Christopher Farmer, had previously traveled to Singapore to visit the offices of 3AC.
Documents and assets to be provided by the fund’s co-founders
There is still no trace of the founders of the foundation. This only makes things more heated by the day: if Soo Joo and Kyle Livingston don’t show up soon, it’s possible that local law enforcement may be after them.
Not only cryptocurrency platforms but also banks have been outraged by customers in recent days. The Chinese city of Zhengzhou recently saw massive protests over the blocking of a huge number of local bank accounts. Sources estimate that the amount of funds in blocked accounts could exceed the $1.5 billion mark.
Rumors about the plight of Chinese banks have been circulating on the Web since at least April 18. At that time, three major banks at once froze deposits of clients, referring to the update of their systems.
This whole situation perfectly demonstrates the main flaw of the traditional financial system — complete centralization. The client, whose funds were left sitting idle at the bank, is essentially being held hostage by the bankers.
The collapse of Three Arrows Capital is one of the major sensations in the cryptocurrency industry in 2022. Still, not too long ago, 3AC was considered a key player in the market, actively investing in new platforms, while Suu Joo was gaining hawkers amid his harsh remarks.
Now the fund not only faces an asset sale, but also the prospect of having to track down the founders. The situation can only change so drastically and dramatically in the digital asset industry.
Cryptocurrency
bitFlyer Acquires FTX Japan to Expand Crypto Custody Services
![](https://letizo.com/wp-content/uploads/2024/07/bitflyer-acquires-ftx-japan-to-expand-crypto-custodyservices_66a3f8b009b6d.jpeg)
Japanese crypto exchange bitFlyer announced that it has completed its acquisition of FTX Japan, making it a fully owned subsidiary.
The deal, finalized on July 26, will have bitFlyer taking 100% ownership of FTX Japan’s outstanding shares.
Crypto Custody Services
In a Friday press release, bitFlyer detailed its plans to rebrand the newly acquired entity as “Custody New Company” by August 26, 2024. This new entity will focus on expanding bitFlyer’s crypto custody business, leveraging the company’s existing operational resources and advanced wallet technology.
“By acquiring all shares and management rights of FTX Japan, we aim to achieve sustainable growth,” bitFlyer stated. “We will leverage synergies within the bitFlyer Group to develop new services, benefiting not only FTX Japan and its customers but all stakeholders of the bitFlyer Group.”
According to bitFlyer, the Custody New Company will focus on meeting the growing demand for secure crypto asset management among institutional investors.
“The increasing need for institutional investors to enter the crypto asset market and the need for professional security measures drive our strategy,” bitFlyer explained. “We believe that providing advanced crypto custody services and crypto asset ETF-related services will add significant value to the bitFlyer Group.”
bitFlyer also said that it is prepared to address this demand with advanced security measures, using its expertise in blockchain technology and security. The company has developed a highly secure wallet, which will be integral to its new crypto custody offerings.
The financial terms of the acquisition have not been disclosed. However, they stated that it is exploring the provision of services related to cryptocurrency derivatives ETFs while awaiting further legislative developments in Japan, including tax regulations. These offerings are aimed at meeting the needs of financial institutions and trust banks.
FTX Japan’s History
The acquisition follows a sale order issued by the U.S. Court of Insolvency on July 16, 2024. FTX Japan has been under Chapter 11 bankruptcy protection since November 2022, following the collapse of its parent company, FTX. The Japanese arm had stopped exchange operations after the bankruptcy filing but continued managing customer assets.
FTX Japan was launched in June 2022, facilitated by the acquisition of fintech company Liquid Group and its subsidiaries, including Quoine Corporation, one of Japan’s first crypto exchanges.
Despite its promising start, FTX Japan faced issues just five months later when its parent company collapsed amid allegations of embezzlement and misappropriation of billions of dollars in customer funds. FTX’s founder, Sam Bankman-Fried, was subsequently sentenced to 25 years in prison and ordered to reimburse $11 billion.
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Cryptocurrency
BTCC Exchange Introduces Up to 50x Leverage on Over 300 USDT-Margined Trading Pairs
![](https://letizo.com/wp-content/uploads/2024/07/btcc-exchange-introduces-up-to-50x-leverage-on-over-300usdt-margined-trading-pairs_66a3f8a501e71.jpeg)
[PRESS RELEASE – VILNIUS, Lithuania, July 26th, 2024]
In a significant move this July 2024, BTCC has launched up to 50x leverage on over 300 USDT-margined trading pairs. This development follows the successful introduction of 500x leverage on major trading pairs, including BTC, ETH, XRP, SOL, and DOGE. BTCC has now decided to elevate the futures trading experience by increasing the available leverage from 20x to 50x, setting a new standard in the crypto trading world where most exchanges only provide up to 20x leverage for their traders.
Since this launch, nearly 25% of orders have been placed with 50x leverage, showcasing the strong demand among traders. The 300+ cryptocurrencies feature many of the coins in the market right now, such as PEPE, SATS, WIF, SHIB, ZK, WLD, AVAX, and TON.
Alex, Head of Operations at BTCC, commented on the launch, “In June, we introduced 500x leverage on major pairs, and the response was overwhelmingly positive. Our users have since been asking for higher leverage on other altcoins, especially memecoins. This feedback drove our decision to increase the leverage to 50x on over 300 trading pairs.”
The primary advantage of higher leverage can be the ability to open large market positions with a relatively small amount of capital, allowing traders to significantly amplify their potential profits. This feature can be attractive for experienced traders who can predict market movements. However, traders must be aware of the risks involved, and the stop-loss feature is an essential tool to help manage these risks effectively.
About BTCC Exchange
BTCC, established in 2011, is one of the world’s longest-serving and most reputable cryptocurrency exchanges. Known for its robust security measures and user-friendly platform, BTCC offers a wide range of features, including spot trading, futures trading, and copy trading, catering to both novice and experienced traders.
Website: https://www.btcc.com
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Cryptocurrency
Ethereum Foundation Wallet Transfers Over $290 Million in ETH After 7 Years
![](https://letizo.com/wp-content/uploads/2024/07/ethereum-foundation-wallet-transfers-over-290-million-ineth-after-7-years_66a3f89a1c4f4.jpeg)
A wallet associated with the Ethereum Foundation has transferred 92,500 ETH, worth $294.9 million, after being inactive for nearly 6.6 years.
According to Lookonchain, these tokens have been held at the same address since 2017.
The Transfer Details
On-chain data indicates that the ETH was originally received from the Ethereum Foundation on September 1, 2015. The transfer, recorded on July 25, occurred just minutes after a smaller transaction of 1 ETH from the same wallet.
Before the transaction, the only other one from this address in the past seven years was a negligible movement of 0.000513 ETH 30 days ago.
An #EthereumFoundation-related wallet transferred 92,500 $ETH($294.9M) to a new wallet 9 hours ago after being dormant for 6.6 years.
Through on-chain tracking, it was found that these $ETH were received from the #EthereumFoundation on Sept 1, 2015.https://t.co/FKGsNCrBAT pic.twitter.com/vPOAMq4ccK
— Lookonchain (@lookonchain) July 26, 2024
At writing time, Etherscan shows that the funds remain in the new wallet. The reasons behind this transfer are still unknown, and the Ethereum Foundation has not commented on the situation.
Before this, the organization had not engaged in any major selling activity in the current market cycle, causing speculation about a potential change in strategy.
Analysts noted that, historically, the Foundation had strategically sold large amounts of ETH during each bull market, often timing these sales with market peaks. The absence of significant sales in the current cycle had raised questions about whether the market peak was still ahead or if the Foundation had altered its approach.
On July 25, the price of ETH dropped by 10% as spot Ethereum ETFs experienced $133 million in outflows on their second day. The asset fell from nearly $3,500 to a multi-day low of $3,130. At the time of writing, the token is trading at $3,266, having increased by 3% in the last 24 hours.
Previous Ethereum Foundation Transfers
Earlier in July, other wallets linked to the Ethereum Foundation made some transfers. On July 17, according to on-chain analytics firm SpotOnChain, an Ethereum Foundation wallet and another connected to an Ethereum initial coin offering (ICO) participant transferred $12.5 million and $9 million worth of ETH, respectively, to Kraken.
Two #Ethereum Foundation/ICO-related wallets deposited 3,631 $ETH ($12.5M) to #Kraken in the past 2 days as the market rebounded:
1️⃣ Wallet 0xdb3 unloaded 2,631 $ETH ($9.01M).
• It received $ETH from the Ethereum Foundation and Ethereum ICO participant 0xAb0.
• Since June 8,… pic.twitter.com/rpEC1Fe4jj
— Spot On Chain (@spotonchain) July 17, 2024
Since early June, these two wallets have deposited a total of 17,886 ETH, valued at around $65 million, to the centralized cryptocurrency trading platform, suggesting a possible sell-off.
In January, Arkham Intelligence identified a blockchain address associated with the Ethereum Foundation that sold $1.6 million worth of ETH.
Then, in April, Peckshield Alert reported that the Foundation had converted part of its ETH holdings into stablecoins, exchanging 100 ETH for 354,000 DAI during a time when ETH was trading above $3,600.
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