3AC wallets on high activity, revival hopes surface

Recent reports indicate that the wallets of Three Arrows Capital have been recording several activities in the past few days, shifting $20 million worth of ETH and other stablecoins. The activities led to speculation that the network creators could be trying to revive the failed fund.

3AC wallets active in the past few days

Three Arrows Capital (3AC) was a crypto hedge fund ordered to liquidate in June 2022. Recent reports indicate massive movements of ETH, USDT, and USDT to and from 3AC’s wallets.

Blockchain scan reports indicate that 3AC’s wallets conducted about eight transactions between November 8th and 14th. Six days ago, 3AC received about 1.106 million USDT through OKX. One day later, there was an Ethereum transaction of about $1.14 million to another address from 3AC’s address. 

Later, USDT 1.231 million passed through OKX to the 3AC address. The trend continued with funds moving in and out of 3AC’s wallets. The last transaction associated with OKX address was four days ago, when Cowswap sent 10.495 million USDC to the OKX address. 

Over the past 6-day period, over $20 million worth of the three crypto-assets, USDC, USDT, and ETH, moved through the addresses of Cowswap, OKX, and 3AC. 

A scan of the wallets of this fallen fund indicates some of their holdings. 3AC holds around $56.7 million worth of crypto assets in its wallets. 80% of the holdings are in stable cryptocurrencies like USDC, USDT, BUSD, and DAI. Other assets include ETH, SYN, LDO, DEXT, UNI, WETH, and others. 

Speculation that 3AC could be reviving

The sudden activities have led to speculation that the failed fund could be trying to revive and raise funds. Mike Duda, the founder of the 6th Man Ventures network, actually recently tweeted; 

“If you’re wondering why Su Zhu and Kyle Davies suddenly reappeared on the scene trying to whitewash their fraudulent past, it’s because they’re allegedly trying to raise a new fund; what a world.”

The reappearance Mr. Mike is talking about could be linked to a series of tweets that Su Zhu has been sending in the recent few days. For instance, just a few days ago, Zu Shu responded to the claims that he knew about the happenings associated with FTX a long time ago.

One tweep @TradeXplanation questioned Mr. Zu Shu, saying, “If you smelt a rat, what convinced you to become one of the biggest traders on their exchange? @zhusu.” While responding to the question, Mr. Zu Shu said, “It’s a long story, but we were scammed just like you guys.”

FTX personnel leaked 3AC’s positions

In some tweets released recently, Zu Shu appears to be celebrating the fall of FTX and Sam Bankman Fried. He accused the exchange and some of its personnel of leaking 3AC’s positions to others throughout the year. One of his tweets said; 

“Clement at FTX HK leaked our positions and account details to many ppl throughout the year.”

While the activities of 3AC’s wallets could indicate the possible revival of the dead fund, Shu’s tweets are mainly because of the recent troubles facing FTX. He said, “It’s ok –justice is coming.”