Crypto lender Celsius loaned $75 million to Three Arrows Capital

Quick Take

  • Crypto lender Celsius made two loans to Three Arrows Capital prior to its collapse.
  • It claims it is owed $75 million from the collapsed hedge fund.

Crypto lender Celsius loaned $75 million to collapsed hedge fund Three Arrows Capital (3AC).  

Documents obtained by The Block show that Celsius made two loans in the stablecoin USDC to 3AC. One loan was for $50 million and the other for $25 million. That’s according to an affidavit submitted by 3AC co-founder Kyle Davies and a notice of termination from Celsius to 3AC. 

3AC fell apart after losing significant sums of money when the cryptocurrency Luna (LUNA) and its sister token TerraUSD (UST) experienced a death spiral. It led to large losses for many other crypto firms that had lent it money, often through undercollateralized loans. 

Celsius has also been struggling since the collapse of Luna and 3AC and declared Chapter 11 bankruptcy in New York last week. In its initial court filings, Celsius claimed a $1.2 billion hole in its balance sheet as well as the possession of $600 million in celsius tokens (CEL) as assets (when the token only has a market cap of $188 million, implying it would be hard to redeem that value). 


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In the notice of termination, Celsius said that 3AC had not provided the required additional collateral, after it was demanded, nor had it made a required payment. 

In the affidavit submitted by Davies, he provided data that showed 3AC owed more than $3.5 billion to a series of crypto companies.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Authors

Tim is the Editor-In-Chief of The Block. Prior to joining The Block, Tim was a news editor at Decrypt. He has earned a bachelor's degree in philosophy from the University of York and studied news journalism at Press Association Training. Follow him on X @Timccopeland.
Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.
Ryan Weeks is deals editor at the The Block, focused on fundraising, M&A and institutional trends in the crypto space, among other things. He is particularly interested in investigative work — so please send tips! Ryan previously worked at Financial News, Dow Jones as a fintech correspondent in London. Prior to that, he wrote for several different publications, including Sifted, AltFi and Wired. Beyond journalism, Ryan is a keen reader and writer. He enjoys all things active, especially running, rugby, climbing and tennis.