Unchained Why 3AC's Collapse Could Spell the Start of a Crypto Credit Crunch - Ep. 376
Jul 22, 2022
Adam Cochran, a partner at Cinneamhain Ventures, shares his expertise on the crypto industry's current landscape, especially in light of 3AC's liquidation. He delves into why 3AC founders are labeling themselves as creditors and the complexities of the corporate veil. Cochran speculates on the impact of 3AC’s downfall on retail investors and potential crypto credit crunches. He also discusses the implications of liquidating high-value assets, like a yacht, and what creditors might prefer in this tumultuous environment.
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3AC Liquidation Filing
- Three Arrows Capital (3AC) surprised the industry with its liquidation filing, given its prominent status and perceived risk aversion.
- Filing for liquidation oneself is unusual and raises questions about 3AC's motivations.
Corporate Veil
- The "corporate veil" separates personal and corporate liability, protecting individuals from business debts.
- 3AC's actions, like filing for liquidation, might aim to avoid "piercing the corporate veil," which could expose founders personally.
Creditor Claims
- Su Zhu and Kyle Davies listing themselves as creditors in 3AC's bankruptcy raises questions, but there could be legitimate reasons.
- Complex corporate structures and legal strategies can involve personal funds entangled with business assets.
