<p class="p1"><b><i>Update (2:04 p.m. EDT on Sept. 7):</i></b><i> Since this story was published, Blockworks <a href="https://blockworks.co/bankrupt-crypto-fund-3ac-withdraws-45m-from-curve-finance-convex/">reported</a> 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. </i></p> <p><span style="font-weight: 400;">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.</span></p> <p><span style="font-weight: 400;">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</span> <a href="https://etherscan.io/address/0x23237b849d0e6f392573ee6ae9e3b1256f058143"><span style="font-weight: 400;">Ethereum address</span></a><span style="font-weight: 400;"> 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.</span></p> <p><span style="font-weight: 400;">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.</span></p> <p><span style="font-weight: 400;">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 </span><a href="https://dune.com/21shares_research/3ac-addresses"><span style="font-weight: 400;">$86.8</span></a><span style="font-weight: 400;"> million in tokens and NFTs holdings on Ethereum across several addresses tied to the firm.</span></p> <p><span style="font-weight: 400;">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</span> <a href="https://www.theblock.co/post/159261/three-arrows-capital-founders-miss-the-mark-in-first-interview-since-firms-collapse"><span style="font-weight: 400;">reported</span></a><span style="font-weight: 400;"> that the firm had owed creditors more than </span><a href="https://www.theblock.co/post/159261/three-arrows-capital-founders-miss-the-mark-in-first-interview-since-firms-collapse"><span style="font-weight: 400;">$3.5 billion</span></a><span style="font-weight: 400;">. The fund filed</span> <a href="https://www.theblock.co/post/155578/three-arrows-capital-files-for-chapter-15-bankruptcy-in-new-york"><span style="font-weight: 400;">Chapter 15 bankruptcy</span></a><span style="font-weight: 400;"> in New York on July 1. </span></p> <p><span style="font-weight: 400;">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.</span></p><br /><span class="copyright"><p>© 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.</p> </span>