18 June

“Bitcoin (BTC) has tumbled 23% since Sunday, heading for its worst weekly performance since May 2021. As of press time the largest cryptocurrency was changing hands just around $20,500. The price has declined 56% year-to-date.”

“Beleaguered cryptocurrency fund Three Arrows Capital (3AC) confirmed Friday it had suffered heavy losses in the recent market downturn and said it had hired legal and financial advisors to figure a way out. 3AC is exploring options including asset sales and a rescue by another firm and hopes to reach a settlement with creditors, Davies said.

The fund had over $3 billion worth of cryptocurrencies under management as of April. Davies added that 3AC was working on quantifying its losses and valuing its illiquid assets, which include many venture-capital investments in crypto startups.

We are committed to working things out and finding an equitable solution for all our constituents. The Terra-Luna situation caught us very much off guard.

Law firm Solitaire LLP, which is advising 3AC, told the WSJ that it was keeping Singapore’s financial regulator, the Monetary Authority of Singapore, apprised of 3AC’s recent developments.”

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“Caisse de dépôt et placement du Québec, a major Canadian pension fund, and the New York-based WestCap Group led Celsius’ oversubscribed $750 million Series B funding round last year, which raised the firm’s valuation to $3.5 billion. However, neither of them is reportedly willing to provide additional funds to Celsius.

Investors are willing to either stand back, or let another company try to buy Celsius. Another possible option on the table is to simply let the business restructure; earlier this week, Celsius reportedly hired restructuring attorneys.

There was more risk in this than fully appreciated.

Securities regulators in five states have opened investigations into Celsius’ decision to freeze withdrawals.”

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Hong Kong-based crypto lender Babel Finance has suspended withdrawals and redemptions. ‘Babel Finance is facing unusual liquidity pressures,’ the statement reads, before alluding to major fluctuations in the market and ‘conductive risk events‘ among institutional market participants.

At the end of 2021, Babel Finance had an outstanding loan balance of over $3 billion, up from $2 billion the previous February. It averaged $800 million in monthly derivatives trading volume and had structured and traded over $20 billion in options products.

On Thursday, rival staking platform Finblox made a similar decision, restricting withdrawals to $1,500 per month due to its connection with Three Arrows Capital.”

Immutable said the fund will collaborate with crypto and gaming investors including BITKRAFT, Animoca, Arrington Capital, Double Peak, Airtree, King River Capital and GameStop. Immutable Ventures has invested in Web3 companies and NFT startups including Starkware, Stardust, PlanetQuest and Topology.

Earlier this year, GameStop partnered with Immutable X for the launch of its NFT marketplace. Some of the names already building on Immutable include GameStop, TikTok, Opensea, Ember Sword and more.”