Crypto Hedge Fund Three Arrows Set for Court-Ordered Liquidation (bloomberg.com) 56
A British Virgin Islands court ordered the liquidation of Three Arrows Capital, the crypto hedge fund that bet big on everything from Bitcoin to the ill-fated Luna tokens and then succumbed to a $2 trillion wipeout of the digital-asset markets. From a report: The court, which made the order on Monday, has appointed two partners at consulting and advisory firm Teneo to handle the liquidation, according to a person familiar with the matter, who declined to be identified because the information is confidential. Teneo will oversee talks with potential buyers that may be interested in Three Arrows's remaining holdings, such as tokens or equity stakes in crypto startups, the person added. A website will be set up to locate creditors and determine who is owed what. Three Arrows has invested in a range of decentralized finance platforms such as Aave and dYdX, as well as crypto infrastructure firms such as StarkWare, according to its website. It's not immediately clear what or how much of these holdings will be subject to a sale.
Spam Account (Score:1)
Not sure what the game is here but posting history makes this look awful bot like. Ban.
Ketchup wall is funnier (Score:2)
I concur that the FP smells like an adbot.
This is not a real joke. Just the funniest meme I've seen recently.
First of many (Score:2)
I look for a deluge to come.
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Sad... (Score:2)
I really feel bad for people that bought into companies like this, that probably had no idea of the level of risk they were buying into. So many crypto companies looked decent and reliable on the surface, but have really ashy financial structures underneath that could only last while prices were increasing substantially...
Good luck to all out there, I hope no-one lost anything they could not afford to lose from this. But you know some will have gone too far in and really get hurt.
Re:Sad... (Score:5, Interesting)
I really feel bad for people that bought into companies like this,
I don't. How many times on here and a multitude of other places were people warned about crypto being a scam/pyramid scheme/whatever? Over and over everyone was warning others not to put money into crypto for the the very reason of this story. And yet, people still did, and this is the result.
Think of these people like drug users. How long have people been told they might die using drugs, yet people keep seeking out new and inventive drugs to use. And then some of them die, all because they knew more than everyone else.
Same here. If you lost all your money or life savings, no sympathy. You were warned, but you knew better. You're responsible for your own loss.
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Bitcoin itself cannot "go out of business" unless everybody just forgets about it and turns off the servers.
Actually, it can. As soon as it is small enough, getting a controlling computation pool that can then do anything becomes easy. And at that point it is over.
We hit that point sometime ago (Score:2)
Markets tend to consolidate over time. Success breeds more success and the winners buy out the losers. In the case of any cryptocurrency that natural tendency for markets to consolidate means that sooner or later you're
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Bitcoin itself cannot "go out of business" unless everybody just forgets about it and turns off the servers.
Sure it can.
If the price drops low enough that the big miners start switching off their hardware (let's assume they always cash out any coins they mine immediately - they're not stupid) then who's going to run the blockchain?
A 50% takeover becomes more and more likely.
If you're not a /. reader (Score:2)
Worse, take all the baby boomers who can't work anymore but can't afford to retire. The pressure
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But but the gobuerment is sooo scary and bad. It has to be better to be unregulated as no criminals and scammers cause probably just the evil Federal Reserve said every libertarian ever
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So many crypto companies looked decent and reliable on the surface, but have really ashy financial structures underneath that could only last while prices were increasing substantially...
Which crypto companies looked "reliable"? They were trading in crypto which is as far from reliable as you can get. That's like saying people invest in hedge funds because they are "low risk and safe".
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If you replace "reliable" by "peddled by famous people" there were plenty.
And for too many people, those things are basically the same.
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If you replace "reliable" by "peddled by famous people" there were plenty.
And for too many people, those things are basically the same.
Indeed. Basically a somewhat modified "Appeal to Authority" fallacy at work.
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There was a good rebuttal by drinkypoo in a previous /. topic to someone who kept claiming that "crypto is good. Dudes who drive Lambos do crypto". Just because someone with a lot of money bought into tulips doesn't mean that buying tulip bulbs will be a "sure thing", especially at a different time, where the market may just wind up saturated, or the pyramid just has reached the maximum amount of people who will come in at the bottom to hold everyone else up, before it starts collapsing.
If someone is pedd
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More than that, the "dudes who drive Lambos" already did crypto and realized their gains when they got out of it to buy the fucking Lambo that they're driving. If you're getting in now, you are probably giving your money to those "dudes" that got in before you, and you have no idea if there's anyone coming in after you to give you their money.
TL;DR: people higher in the pyramid get your money, and you don't know if you're the foundation of the pyramid that is about to collapse and crush you under many hu
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If you don't know if you're the bottom of the pyramid, then you're not one of the in-crowd, which... Makes the conclusion blindingly obvious.
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A lot of crypto exchanges -try- to appear to look like banks, but if one has crypto in their custodial wallet... they are not holding crypto... they are holding IOUs, and as previous exchange intrusions have showed, if you don't "own" your secret key, you don't own your cryptocurrency.
This is one fallacy that seems to trap newcomers to crypto. They think they can just buy BTC like a foreign currency, and call it done. When in reality, if the exchange does south, all holdings associated with that exchange
Yes agree (Score:2)
This is one fallacy that seems to trap newcomers to crypto. They think they can just buy BTC like a foreign currency, and call it done.
That is indeed one of the bigger ways I think most people were fooled into losing money, not understanding what was held where and by who.
When I had any crypto, I just used CoinBase to buy, then usually moved it right away into a different wallet.
If things go bad enough for real banks though people might find that banks are not so far removed from the crypto companies as the
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AThey think they can just buy BTC like a foreign currency, and call it done.
Even worse, they think they can exit just like selling a foreign currency.
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Because... because... they said so.
I mean who would lie when it comes to money?
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Honestly, anyone willing to put thousands of dollars into crypto speculation and NOT spend $50 on a hardware wallet gets what is coming to them. May as well be playing an alley craps game and get shocked and surprised when someone sits on the side making tiny bets waiting for the cash pile to get big enough, and then grabs it and run away - which is a different gamble, where they are hoping they can run faster and farther than everyone else in the game who's chasing them down to throw them a beating.
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What if you loose or the hardware wallet malfunctions
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The hardware wallets worth buying don't actually store the crypto on the device - it's stored on the blockchain. Your private key is stored on the device, and you have a recovery procedure if something happens to the device. In the case of "Ledger" as an example, it gives you a series of words to write down and put in a safe place so that if your device fails or is lost, you can get another one and use your recovery words that you put in your safe or wherever to regenerate your key.
Therefore if you are bu
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I really feel bad for people that bought into companies like this, that probably had no idea of the level of risk they were buying into.
I do not. All the red flags were there. Tons of warnings and explanations were there. Anybody that had "no idea" did not want to know. These people did it to themselves by arrogance, greed and stupidity.
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The only way some people realize how high risk something is, is to lose their ass because they speculated on high-risk instruments.
It's a shame, but it's a bed of their own making - they ignored all the warnings from many people both here and across the Internet. It really isn't much different from people that lost their ass in 2008 when they thought they would get rich flipping houses. By the time your idiot brother-in-law starts talking about getting in on it, the market is in a bubble and it's time to
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People are flipping houses right now and becoming quite wealthy doing it
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And there's probably a set of them that just got into it, right as interest rates are on the rise which will cause a real estate slow-down, and they're going to get financially fucked just the same as people did 14 years ago.
Those that do not learn from history are doomed to repeat it.
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Easy money is money easily lost.
Some have forgotten this old adage.
first of many? (Score:2)
*grabs popcorn*
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You seem to have been living under a rock the last 10 days or so ;-)
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Is it time? (Score:2)
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Sorry. The ones that tell people that, have long since cashed out and now own a lot of actual "fiat" money that they were ostensibly so against.
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At least the smart ones clearly have, yes. The lower 99% of the pyramid still have to realize what is going on though.
Re: Is it time? (Score:1)
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I read the implication as: women are, in general, wiser than men, and hence avoid crypto.
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crypto sisters are rarer than female electronic music producers
You cannot squeeze water from dry air... (Score:2)
hence I do not think there is anything to "liquidate". Maybe they can auction off some office furniture. Unless that was bought on credit.
how to get water from dry air... (Score:2)
It actually depends on how dry the air really is. Within many naturally occurring settings, even very low humidity air has some amount of moisture in it.
https://www.cnn.com/2021/06/30... [cnn.com]
The better analogy is 'squeezing blood from a stone', since stones aren't organic and will thus never contain any blood.
hth
wait... what? (Score:2)
But I thought that crypto was going to recover and double in value according to some of the anonymous muppets around here. How could a fund be forced to liquidate if that's the case?
Liquidation (Score:2)
We're going to learn really quickly how liquid those assets really are.
And they be gone (Score:1)
https://news.google.com/articl... [google.com]
Liquidate? (Score:2)
Re (Score:1)