Three Arrows Capital (3AC), a company that owns staked ether, reclaimed almost $33.3 million from Curve. Convex Finance provided additional assets worth $12 million to the firm. Three Arrows Capital, a troubled crypto hedge fund, has recovered $45 million from deposits it previously staked on Curve Finance and Convex Finance.
According to Curve Finance on-chain activity, Curve Finance reported that the firm pulled 20,945 staked Ethereum (stETH) worth $33.3 Million from Curve Finance at 4:34 AM ET Tuesday.
Nansen marked an Ethereum adress as belonging to 3AC. Lido Finance offers a token called “staked ether” that allows staked Ethereum (ETH) to be used for other trades. This is known as liquid staking.
Curve borrowed funds from convex finance
Convex Finance is a yield optimizer for Curve. On-chain data also shows that the firm borrowed funds from Convex Finance.
It drew close to \$12 million of crypto from Convex Finance, which included 2,421 wrapped Ethereum (3.98million), 202.7 wrapped Bitcoin (\$4 million) as well as 4,051,367 USDT stablecoin.
Curve currently holds the assets in the same wallet address that was used to transact. The address is home to assets totaling $57.86 millions. 21 Shares, a crypto derivatives firm, says 3AC has $86.8 millions in tokens and NFTs on Ethereum at several addresses that are tied to the company.
Three Arrows Capital’s collapse earlier this summer caused chaos in the crypto space and many of its lenders to lose significant amounts of money. The firm owed creditors more $3.5 million. On July 15, the fund filed Chapter 15 bankruptcy at New York.
Social media commentators speculate that the firm might be trying to liquidate its holdings in order to pay creditors. However, it is not clear what the purpose of today’s withdrawals are.