Deribit Exchange Stake A Disputed Asset in 3AC Bankruptcy

Transcript

00:00so there's an ongoing battle now around the stake in crypto exchange deribit which is now becoming

00:08disputed as an asset in the three arrows of bankruptcy case so as three arrows capital the

00:16troubled crypto hedge fund i've been reporting on this quite a lot and you know through its

00:22struggles and the proceedings in the british virgin island and bankruptcy court hearings in

00:28new york and there's all this behind the scenes drama that's playing out over the value of a key

00:35asset which is an indirect stake of nearly 17 in deribit i've done a full extensive review of our

00:42deribit exchange before it's available on our main site go to decentralized news for the best

00:49cryptocurrency exchange reviews devout platform reviews and also give us a like and a share and

00:53subscribe and it'll just motivate me to keep bringing you some good news destroy the like

00:59button man i appreciate it so one estimate actually getting passed around by creditors puts the value

01:06as high as 500 million according to a document shared with coindesk by a person who's directly

01:14involved in the process but the stake may be far worth less so one reason that the stake is locked

01:22up in a complicated legal structure that might impair three capitals or three arrows capital's

01:28liability to quickly liquidate that asset is based on a review of corporate filings and court documents

01:34and three arrows appears to have used side letters over the years to quietly sell off interest in the

01:40special purpose vehicle that they created to hold the deribit shares another issue is that the private

01:46market valuation of deribit shares is believed to have fallen during the recent

01:52crypto crash and deribit itself has a claim on three arrows capital and now this might also mean

02:00that it is significantly impaired according to court filings the hedge fund owes about 80 million to

02:08deribit including unpaid loans and negative values in a trading account deribit acknowledged a claim

02:16in a tweet on june 16th that also confirmed three arrows had been a shareholder in the company since

02:23february 2020 let me know what your thoughts are of course i'm not sure if you're using deribit

02:28what does it mean for this cryptocurrency exchange do you think they will survive this let me know what

02:34your thoughts are like share subscribe turn on the notification bell check out the links in the

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02:44together peace