According to Danny Yuan, their researchers discovered $1 million misappropriated from their personal profit at Three Arrows Capital (3AC).
As allegations of 3AC’s collapse persist, Danny Yuan, the CEO of trading firm 8 Blocks Capital, has called on venues storing assets controlled by 3AC to seize the assets.
Yuan detailed their industry’s affiliation with 3AC in a Twitter thread, stating that they fund the business to utilize the brokerage accounts that they possess. The contract stipulated that funds could be withdrawn at any moment. As he clarified:
“We’d known them since 2018, and we didn’t think they were degenerate enough just to lose billions while ignoring basic risk mitigation.”
There were no issues, as per Yuan, until June 13, when 8 Blocks Capital sought a large exit due to market circumstances. The CEO of the brokerage firm stated that 3AC had not responded. “For a while, but then, the economy levelled off, and we didn’t require the funds.” “We assumed they were simply preoccupied,” he writes.
Unfortunately, things took a turn for the worst when 8 Blocks Equity discovered $1 million stolen from their 3AC assets through a program. Yuan claimed he contacted Kyle Davies, 3AC’s co-founder, and his colleagues to enquire about the stolen monies. They did not, though, receive an answer.
Because reports of 3AC’s bankruptcy have been spreading online, Yuan stated that they have revealed what they know about the incident to assess the situation. Following that, Yuan stated that others with links with 3AC, such as their firm, approached them. Yuan believes that they learned more about 3AC’s condition due to this. Yuan wrote on Twitter:
Yuan also mentioned that 3AC still has a lot of investments on multiple platforms, which he didn’t name. As a result, Yuan officially requested that such sites freeze 3AC’s assets so that the company can repay its obligations following future judicial cases.
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