Crypto Crash: Is Three Arrows Capital the next victim?

According to media reports, the hedge fund faces many billions of dollars facing potential bankruptcy. Also: Tech shares rise after interest rate hike and Qualcomm wins EU lawsuit.

The future of crypto hedge fund Three Arrows Capital is uncertain.
Photo illustration by Chesnot / Getty Images

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The fall in prices in the crypto markets may require another sacrifice: Three arrows capital. The multi-billion dollar Singapore-based hedge fund specializes in crypto and has invested in Avalanche and Ethereum currencies, among others. The hedge fund was founded in 2012 and reportedly has $ 10 billion under management and supported companies such as cryptocurrency lender Blockfi and custodian company Fireblocks for digital assets. Now rumors are circulating that Three Arrows Capital is no longer able to service lenders.

Zhu Su, co-founder of Three Arrows Capital, tweetedthat communication with the relevant parties is already under way. However, he gave no further details. Crypto-focused publication The Block, citing insiders, reported that lenders liquidated at least $ 400 million of the company’s positions. [Mehr bei The Guardian, The Information und Bloomberg]

At Gründerszene you read today: ESOP, VSOP and Co. as a lure for foreign employees: Those who want to use participation programs to Attract talent from abroadshould note a few things. [Mehr bei Gründerszene+]

And here are the other headlines of the night:

Technology and financial stocks gained momentum on Wednesday after the US Federal Reserve raised interest rates by 0.75 percentage points. It is the largest interest rate movement since 1994. The Nasdaq 100 index rose 2.5 percent. It is the strongest increase in almost two weeks. Netflix and Amazon, whose stocks have come under pressure this year, posted their biggest gains in more than a month. Netflix rose 7.5 percent and Amazon rose 5.2 percent. [Mehr bei Bloomberg]

Qualcomm has won a multi-billion dollar legal battle following an antitrust case in the EU. The European Court of Justice has ruled that the US chipmaker should not pay the antitrust fine of almost one billion euros. The regulator fined Qualcomm in 2018 for paying Apple billions of dollars to have its chips used in iPhones and iPads over a five-year period. The European Commission can appeal the decision again. [Mehr bei The Information]

Tesla-Cars running on autopilot have been involved in 273 accidents over the past year. According to the National Highway Traffic Safety Administration, Teslaer has caused nearly 70 percent of the 392 car accidents that have occurred with vehicles equipped with advanced driver assistance systems since June last year. Honda recorded the second highest number of accidents with driver assistance systems with 90 accidents. NHTSA Administrator Steven Cliff said data collection was an “important step” in helping prevent the number of accidents. [Mehr Techcrunch und Wall Street Journal]

Spotify slows down hiring: CEO Daniel Ek wrote in an email to employees that Spotify would “reduce hiring growth by 25 percent”. He said the company will “continue to hire and grow, we just want to slow that pace and be a little more careful with absolute hiring levels over the next few quarters.” It is the latest sign that companies across the technology sector are curbing the growth in the number of employees amid the looming economic uncertainty. [Mehr bei Reuters und CNBC]

Investments: Megarobo Technologies, a Chinese startup using artificial intelligence and robotics technology in life sciences research, has raised $ 300 million. The round was led by Goldman Sachs Asset Management, Asia Investment Capital and GGV Capital. The company, whose products include a Covid-19 test solution, is the latest pharmaceutical startup that could capitalize on an increase in investor interest in the wake of the pandemic. The market research platform Alphasense has raised $ 225 million in a Series D funding round. The New York-based company is valued at $ 1.7 billion. [Mehr bei Reuters und Techcrunch]

Our reading tips on the Gründerszene: Max Wegner, Vitalij Kungel and Alexej Erdle managed without VCs autodoc for billion sales. Founded in 2008, the three are among the early web founders in Germany. [Mehr bei Gründerszene]

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A wonderful Thursday!

Your Gründerszene editors

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