Missing 3AC investors and $50M superyacht tale

‘The beginning of a fascinating journey’ said the broker who announced the sale of a $50 million worth of superyacht. Sanlorenzo, the well-known Italian boat sailor was the largest sale in Asia. However, after the two would-be captains of the vessel shares about how it was “bigger than all of richest billionaires” yachts in Singapore.

“Much Wow”: The Superyacht That Was Marooned in her Berth

The 171ft of glass and steel, as white as Santorini with round edges, one glass bottom pool, and five decks was perfect for July on the Mediterranean and dinners at sunset among the islands of Sicily.

The broker mentioned that the yacht is ready to witness many happy moments ahead. The name of the superyacht by the two buyers was wisely chosen with an inside joke referring to the cryptocurrency dogecoin that would excite their social media accounts and be discernible to all the poor “no corners”. The superyacht “Much Wow” was sadly marooned in her berth on the Italian coast, La Spezia. Here’s why. 

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3AC Investors Filed For Bankruptcy Went Missing

The two Andover graduates and founders of Singapore-based crypto hedge fund, Three Arrow Capital, Su Zhu, and Kyle Davies never had the chance to step into their superyacht “Much Wow”. Right before making their final payment, the two filed for default. International super yacht dealers have been silently notified about a Sanlorenzo 52Steel, that is back on the market.

Ever since the disappearance, the superyacht “Much Wow” has been the subject of memes and jokes on Twitter. Almost every crypto enthusiast is in shock. Since it was one of the most popular investment funds around the globe, the collapse of the firm was embarrassing. 

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Direct Victims of Three Arrow Capitals 

Criminal misconduct and recklessness of the firm, not only forced a crash in bitcoin but sent a shockwave in the entire crypto industry. Crypto enterprises from New York to Singapore were the explicit victims of Three Arrow Capitals.

A crypto exchange platform, Voyager Digital in New York with a multibillion-dollar valuation filed in July for chapter 11, reporting Three Capital owes the company $650 million. The Park Avenue-based company, Genesis Global Trading had lent Three Arrows $2.3billion. An early crypto blockchain company Blockchain.com delivered digital wallets and developed them into a major exchange. However, the company faces $270 million in default loans from 3AC and discharged a quarter of its employees.

Is 3AC Responsible for Crypto Crash of 2022?

Among various crypto observers, there is a huge debate that Three Arrows may be responsible for the huge crypto crash of 2022. The chaos led to the fall of bitcoins and other assets by 70% obliterating trillion dollars from the market value.

Three Arrows Capital has always showcased itself as using its own money. As Zhu, the CEO of 3AC said to Bloomberg in February 2022, “We don’t have any external investors”. By the middle of July, the creditors came forward with an estimated value of $2.8 billion in claims. The amount will however only increase from there.

Almost every investor in crypto seemed to have lent 3AC their digital assets, even their employees who deposited their salary with the ‘borrowing desk’ in an interest swap. The majority of the people are disappointment with the firm. All this money is gone now along with funds and parts of treasuries of 3AC projects. The true amount of the case may be unknown as many startup companies placed their money with the company.

Wrapping Up

The yacht looms as an outrageous self of greed, hubris, and recklessness of the company’s hiding co-founders. While the industry is in a constant battle to defend itself as the future of finance and not a ‘scam. Three Arrows may have embraced the other side, leaving the industry in dismay.