3ACs founders are nowhere to be found

In the world of crypto, theres no such thing as too big to fail. Three Arrows Capital, once the most recognizable hedge fund in the industry, has essentially gone belly-up after its founders believed their own hype and decided to go full-degen mode during the worst macro climate of a generation. Since the proverbial shit hit the fan last month, founders Kyle Davies and Su Zhu have kept a very low profile. So low, in fact, that their whereabouts remain a mystery, according to court documents.

This weeks Crypto Biz chronicles the latest developments surrounding Three Arrows Capital and explores Grayscales legal proceedings against the United States Securities and Exchange Commission (SEC).

Liquidators can subpoena 3AC founders despite tricky issues with crypto assets

We may not know the whereabouts of Kyle Davies or Su Zhu, but that wont stop liquidators from subpoenaing the founders of bankrupt Three Arrows Capital, also known as 3AC. Earlier this week, United States bankruptcy judge Martin Glenn issued an order giving 3AC liquidators permission to demand that the founders attend court. Apparently, Zhu and Davies havent been cooperating with their liquidators. Zhu broke his nearly one-month silence this week by alleging that the liquidators baited his firm. Whatever that means.

Sadly, our good faith to cooperate with the Liquidators was met with baiting. Hope that they did exercise good faith wrt the StarkWare token warrants. pic.twitter.com/CF73xI8r6n

— Zhu Su (@zhusu) July 12, 2022

Grayscale legal officer says Bitcoin ETF litigation could take two years

Grayscales quest for a Bitcoin (BTC) exchange-traded fund (ETF) could get more complicated as the asset manager embarks on suing the SEC for denying its latest application. Specifically, Grayscale is trying to convert its GBTC product into an ETF, but securities regulators wont let them because of concerns about manipulation in the spot BTC market. Craig Salm, Grayscales chief legal officer, said the litigation process could take up to two years before a resolution is reached. Who knows, by that time, the SEC may decide to waive its magic wand and approve another spot Bitcoin ETF.

Multicoin Capital raises $430M for new crypto startup fund

Crypto venture funding has slowed in recent months, but that hasnt stopped major firms from continuing to raise serious capital. Prominent investor Multicoin Capital announced this week that it has launched a massive $430 million fund to bootstrap crypto and blockchain startups. The firms new Venture Fund III will allocate between $500,000 and $25 million to early-stage companies, with an increasing focus on decentralized autonomous organizations, the creator economy and consumer-facing products. 2022 is shaping up to be the biggest funding year ever for crypto.

Playboy to launch first MetaMansion in The Sandbox

Iconic lifestyle brand Playboy is entering the Metaverse and doing it tastefully, too. The company behind your dads favorite raunchy magazine has launched its first MetaMansion in The Sandbox, giving users access to a virtual version of the Playboy mansion. If you decide to pay a visit to the virtual property, youll be able to attend a host of gaming and social events and possibly collect nonfungible tokens (NFTs) in the future. Apparently, the MetaMansion builds on Playboys Rabbitar NFT project, which is comprised of 11,953 tokenized bunny avatars.

Anybunny home? We’re teaming up with none other than…. @playboy!

Together, we will be creating a Playboy MetaMansion social game inside #TheSandbox with #NFT collectibles & special experiences for the Rabbitar @PlayboyNFTs community! pic.twitter.com/3l6Wq6ncvt

— The Sandbox (@TheSandboxGame) July 11, 2022

Dont miss it! Why are crypto platforms going bankrupt?

The cryptocurrency market may never be the same after 2022 and that could be a good thing or a bad thing. With companies like Voyager Digital, Three Arrows Capital and Celsius filing for bankruptcy, investors are worried about what comes next. Is your crypto safe being held on exchanges or lending platforms? In this weeks Market Report, I sat down with fellow analysts Jordan Finneseth, Marcel Pechman and Benton Yaun to discuss how the recent wave of bankruptcies will impact the market.

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