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In the world of crypto, there\u2019s no such thing as \u201ctoo big to fail.\u201d Three Arrows Capital, once the most recognizable hedge fund in the industry, has essentially gone belly-up after its founders believed their own hype and decided to go full-degen mode during the worst macro climate of a generation. Since the proverbial shit hit the fan last month, founders Kyle Davies and Su Zhu have kept a very low profile. So low, in fact, that their whereabouts remain a mystery, according to court documents.\u00a0<\/p>\n
This week\u2019s Crypto Biz chronicles the latest developments surrounding Three Arrows Capital and explores Grayscale\u2019s legal proceedings against the United States Securities and Exchange Commission (SEC). <\/p>\n
We may not know the whereabouts of Kyle Davies or Su Zhu, but that won\u2019t stop liquidators from subpoenaing the founders of bankrupt Three Arrows Capital, also known as 3AC. Earlier this week, United States bankruptcy judge Martin Glenn issued an order giving 3AC liquidators permission to demand that the founders attend court. Apparently, Zhu and Davies haven\u2019t been cooperating with their liquidators. Zhu broke his nearly one-month silence this week by alleging that the liquidators \u201cbaited\u201d his firm. Whatever that means.<\/p>\n
\nSadly, our good faith to cooperate with the Liquidators was met with baiting. Hope that they did exercise good faith wrt the StarkWare token warrants. pic.twitter.com\/CF73xI8r6n<\/a><\/p>\n
\u2014 Zhu Su (@zhusu) July 12, 2022<\/a><\/p><\/blockquote>\n
Grayscale legal officer says Bitcoin ETF litigation could take two years<\/h3>\n
Grayscale\u2019s quest for a Bitcoin (BTC) exchange-traded fund (ETF) could get more complicated as the asset manager embarks on suing the SEC for denying its latest application. Specifically, Grayscale is trying to convert its GBTC product into an ETF, but securities regulators won\u2019t let them because of \u201cconcerns\u201d about manipulation in the spot BTC market. Craig Salm, Grayscale\u2019s chief legal officer, said the litigation process could take up to two years before a resolution is reached. Who knows, by that time, the SEC may decide to waive its magic wand and approve another spot Bitcoin ETF.<\/p>\n
Multicoin Capital raises $430M for new crypto startup fund<\/h3>\n
Crypto venture funding has slowed in recent months, but that hasn\u2019t stopped major firms from continuing to raise serious capital. Prominent investor Multicoin Capital announced this week that it has launched a massive $430 million fund to bootstrap crypto and blockchain startups. The firm\u2019s new \u201cVenture Fund III\u201d will allocate between $500,000 and $25 million to early-stage companies, with an increasing focus on decentralized autonomous organizations, the creator economy and consumer-facing products. 2022 is shaping up to be the biggest funding year ever for crypto. <\/p>\n
Playboy to launch first \u2018MetaMansion\u2019 in The Sandbox<\/h3>\n
Iconic lifestyle brand Playboy is entering the Metaverse \u2014 and doing it tastefully, too. The company behind your dad\u2019s favorite raunchy magazine has launched its first MetaMansion in The Sandbox, giving users access to a virtual version of the Playboy mansion. If you decide to pay a visit to the virtual property, you\u2019ll be able to attend a host of gaming and social events and possibly collect nonfungible tokens (NFTs) in the future. Apparently, the MetaMansion builds on Playboy\u2019s Rabbitar NFT project, which is comprised of 11,953 tokenized bunny avatars. <\/p>\n
\nAnybunny home? We’re teaming up with none other than…. @playboy<\/a>! \u200d\u2640\ufe0f<\/p>\n
Together, we will be creating a Playboy MetaMansion social game inside #TheSandbox<\/a> with #NFT<\/a> collectibles & special experiences for the Rabbitar @PlayboyNFTs<\/a> community! pic.twitter.com\/3l6Wq6ncvt<\/a><\/p>\n