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Hedge Fund 3AC owed Polkadot’s Moonbeam protocol approx $27 million.
Troubles for Three Arrows Capital does not seem to settle down as its court documents came up with yet another issue. Recent documents outline that a crypto hedge fund borrowed $27 million from Moonbeam Foundation—a prominent blockchain development firm. This information was disclosed in the court filings and came out during the court proceedings.
Description of $27 million worth funds that 3AC borrowed from Moonbeam Foundation consists stablecoins worth $17 million while Moonbeam-issued tokens worth $10 million. The agreement between Three Arrows Capital and Moonbeam Foundation was signed in September of last year. As per the terms of agreement, an interest rate of 12% was decided on top of the loan amount.
Although, this was not the only correlation between both the firms. Apart from their monetary terms, 3AC and Moonbeam were also tied in other corporate bonds, where the hedge fund management firm acted as liquidity consulat for Moonriver (MOVR) and Glimmer (GLMR) tokens of blockchain network.
According to their liquidity consultancy terms, Moonbeam appointed Three Arrows to make efforts towards making gateways for the aforementioned two tokens, in new and untested markets that were also needed to be commercially viable. While 3AC also played its role in market analysis and also suggested preferable exchanges where these tokens could be traded.
Moonbeam Foundation is a popular blockchain development smart contract based and operates over the Polkadot network. The protocol plays a crucial role towards interoperability between Ethereum and Polkadot networks.
Three Arrows possess more than 10 million GLMR tokens and about 200K MOVR tokens. Until reports by 15th June, hedge fund did not return these tokens to Moonbeam where their total value accounts for almost $10 million as per the current prices.
However, financial terms were good from Moonbeam towards 3AC where the former had paid about $90K to the latter, as fee in return for consultancy services.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
