ICYMI - Last Week in Crypto: 3AC Files for Bankruptcy, North Korea loses $400m in crypto dip, & ‘CryptoQueen’ joins FBI most-wanted fugitive list.
Catchup on the latest from the world of web3 🚀
The final week of Q3 saw a roller-coaster of opinions and counter-opinions over the state of the crypto market as analysts and investors tried to ascertain if the bear market was over and what to expect in Q3. Amidst the debate on social media, the top cryptocurrencies; Bitcoin and Ethereum lost all monthly gains and so did other altcoins. These market conditions led to North Korea losing “illegally-acquired crypto assets” of up to $400m, however, President Nayib Bukele of El Salvador saw an opportunity to “buy the dip”.
From 3AC filing for bankruptcy to the FBI placing a $100,000 reward bounty on fugitive “CryptoQueen”, we bring you the top headlines that struck the crypto space last week.
Crypto Hedge Fund Three Arrows Files For Chapter 15 Bankruptcy
SIngapore-based crypto hedge fund, Three Arrows Capital has filed for Chapter 15 bankruptcy. A decision they hope will protect its US assets while a liquidation is executed in the British Virgin Islands.
Reports emerged on Monday concerning the insolvency of Three Arrows Capital, confirming that crypto broker Voyager Digital filed a default notice to 3AC for their failure to redeem some of its $673 million debt from loans of 15,250 Bitcoin and $350 million in USDC.
On Wednesday, a publication from Sky News cited that 3AC has been ordered to liquidate by court order in the British Virgin Islands (BVI). Furthermore, Teneo, a management consulting company was tasked to assist in the insolvency proceedings.
Representatives for Three Arrows filed the bankruptcy petition in New York on Friday, court papers reveal. Chapter 15 bankruptcy filings will prohibit creditors from claiming a company’s assets in the US.
3AC, a fund founded by former Credit Suisse traders Zhu Su and Kyle Davies, were in charge of managing around $10 billion of assets as recently as March 2022, according to blockchain analytics firm Nansen.
However, Three Arrows are being represented by law firm Latham & Watkins in the US bankruptcy. The case is Three Arrows Capital Ltd and Russell Crumpler, 22-10920, U.S. Bankruptcy Court for the Southern District of New York (Manhattan).
North Korea Suffer blow to Nuclear Program due to $400m Crypto losses
Following reports from REUTERS, the plunge in the value of top cryptocurrencies amid the market crash has significantly incurred losses on North Korea’s “illegally acquired” crypto. This highlights a potential stump on the nation’s funding for its nuclear weapons program.
Over the previous year, the country has been heavily linked to numerous cyberattacks targeting crypto products, including the $552m hack of play-to-earn game Axie Infinity’s Ronin bridge that occurred in March.
Sometime in February, there were leaked reports from the United Nations that made suggestions that North Korea’s nuclear and ballistic missile programs were funded by crypto.
The country’s adoption of digital assets came after harsh sanctions from the UN and as other sources of illegal funds faded due to the pandemic.
However, the country’s crypto gains during the bull run have now suffered severe losses to the tune of $400m, with two unnamed South Korean government sources telling Reuters that this could disrupt how Pyongyang funds its weapons programs.
Despite losing $60m in Bitcoin, El Salvador “buys the dip”
President of El Salvador, Nayib Bukele seems undeterred by the market dip as he spends another $1 million in Bitcoin, adding 80 BTC (at $19,000) to El Salvador’s existing stash of 2,301 BTC.
In 2021, Bukele revealed his strategy to invest in Bitcoin with the nation’s public funds as well as use the digital asset as a legal tender in El Salvador. The President further displayed his belief in the future of the world’s largest cryptocurrency as he announced that he splashed another $1.5million to purchase 80 BTC at the rate of $19000.
"El Salvador bought today 80 BTC at $19,000 each," the Central American politician tweeted, "Bitcoin is the future, thanks for selling cheap," he said.
According to his previous tweets, Bukele has invested about $104 million in buying 2,301 BTC at an average price of $45,171. Although during the week, when the price of Bitcoin fell to $19000, this incurred a $60 million loss to the country’s investments.
However, following the recent purchase of 80 BTC, Bukele has reduced the average price invested per Bitcoin from $45,171 to $44,219. This further implies that Bitcoin has to regain the unit price of $44,219 (more than 100% of the current market price) for Bukele to recoup the investment made on behalf of his country.
'Cryptoqueen' Listed on FBI's 10 Most-Wanted Fugitives — $100,000 Reward Offered
A German woman who is on the run for defrauding crypto investors out of $4 billion has made it to the FBI's list of its 10 most-wanted fugitives.
Ruja Ignatova — who is popularly known as "Cryptoqueen" — is set to face eight charges of wire fraud and securities fraud following her involvement in the establishment of OneCoin.
The prosecutors hold fervent claims the company was a hoax and nothing short of a pyramid scheme that got its members to influence other people to buy a cryptocurrency with no value.
It's currently been dubbed as "one of the largest Ponzi schemes in history" — due to its alleged "perfect timing" that coincided with the frenzied speculation that was similar to the early days of the crypto markets.
Ignatova, who is originally from Germany, disappeared without a trace in 2017 after she discovered her boyfriend was cooperating with an FBI investigation. Reports had it that she boarded a flight from Bulgaria to Greece and left no traces behind.
The FBI's assistant director-in-charge in New York, Michael Driscoll, says a $100,000 reward bounty is on offer for any information that could lead to her capture. However, he further acknowledged the challenges that will be faced to find her exact whereabouts. He said :
"She left with a tremendous amount of cash. Money can buy a lot of friends, and I would imagine she's taking advantage of that."
That’s all folks!
See you in the new week!
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