Sunday, June 15, 2025

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8 Blocks Capital CEO Says 3AC Ghosted Them After US$1 Million Went Missing From Their Accounts

The plot thickens for Three Arrows Capital. On Thursday, the chief executive of Hong Kong-based cryptocurrency trading firm 8 Blocks Capital accused Three Arrows, also called 3AC, of using about US$ 1 million of their funds “to answer their margin calls.”

8 Blocks CEO Danny Yuan explained their firm’s relationship with the troubled crypto-based hedge fund 3AC in a series of tweets. He said that 8 Blocks had an agreement with 3AC to use their trading accounts for a fee. Under this agreement, which was started in November 2020, 8 Blocks could withdraw at any time, and 3AC would not have any authority to move their funds without their permission.

And then on June 13, when the market started slipping, 8 Blocks asked for a renewal but received no reply. “We didn’t think much of it at the time,” Yuan said. “After a while, the market stablized so we no longer needed the funds. We thought maybe they were just busy.”

But on June 15, 8 Blocks’ fund monitoring script picked up that about US$1 million was missing from their accounts. They then reached out to 3AC co-founder Kyle Davies, as well as the fund’s Ops team on Telegram, but received no response. “They were online and they didn’t pick up,” he said.

This was when they took notice of the rumors about 3AC’s potential insolvency after an alleged US$400 million liquidation. They later learned that 3AC was “leveraged long everywhere and were getting margin-called.” But unfortunately, the fund ignored the margin calls and “ghosted everyone,” resulting to the platforms having “no choice but to liquidate their positions.”

Yuan called out to platforms that still held 3AC assets to freeze them so lenders can be paid back in the future.

3AC co-founders Davies and Zhu Su, who were both tagged in the thread, have yet to respond. Davies has not updated on Twitter since June 9, while Zhu’s most recent tweet is still the vague sort-of-confirmation of the troubles that 3AC is facing.

Yuan, meanwhile, later reported that they were able to recover most of their remaining funds.


Information for this briefing was found via Twitter and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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