The Block: 3AC-labeled wallet withdraws $45 million from Curve and Convex

Update (2:04 p.m. EDT on Sept. 7): Since this story was published, Blockworks reported that although Nansen originally labeled the wallet in question as belonging to 3AC, now it has said that the entity "managing" the wallet is Matrixport, a 3AC counterparty. The headline and story have been updated to reflect that report.

A wallet linked to crypto hedge fund Three Arrows Capital (3AC) has reclaimed $45 million in deposits it had previously staked on two different decentralized exchanges: Curve and Convex Finance.

At 4:34 am ET on Tuesday, the wallet withdrew 20,945 staked ether (stETH), worth $33.3 million, from Curve Finance, according to on-chain activity on an Ethereum address that Nansen has marked as belonging to 3AC. Staked ether is token offered by Lido Finance that allows staked ether (ETH) to be used in other trades in a process known as liquid staking.

On-chain data also shows the wallet took out funds from Convex Finance, a yield optimizer for Curve. From Convex, it withdrew nearly $12 million worth of crypto, including 2,421 wrapped ether (3.98 million) 202.7 wrapped bitcoin ($4 million) and 4,051,367 USDT stablecoin.

The assets currently sit in the same wallet address used to transact with Curve. This address holds assets worth a total of $57.86 million. Crypto derivatives firm 21 Shares says that 3AC holds $86.8 million in tokens and NFTs holdings on Ethereum across several addresses tied to the firm.

Earlier this summer, the collapse of Three Arrows Capital sent the crypto space into chaos and caused many of its lenders to suffer heavy losses. The Block reported that the firm had owed creditors more than $3.5 billion . The fund filed Chapter 15 bankruptcy in New York on July 1.

While social media commentators have speculated that the firm may be looking to liquidate its holdings to pay off creditors, the purpose of today's withdrawals is unclear.

© 2023 The Block Crypto, Inc. 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.