According to a court affidavit filed by Charles McGarraugh, chief strategy officer of cryptocrypto service Blockchain.com, Three Arrows Capital spent nearly four years leading up to its bankruptcy Borrowed and repaid more than $2 billion from Blockchain.com. Blockchain.com and Three Arrows Capital entered into a master Loan Agreement (MLA) effective June 13, 2019, according to the affidavit. Blockchain.com sent a reminder of the outstanding loan to Sarrow capital on June 14, and Sarrow capital defaulted on the payment after failing to meet the June 16 deadline. The affidavit notes that Three Arrows capital has paid back some of the loan to Blockchain.com, but the amount outstanding is substantial and Blockchain.com intends to pursue them to the full extent legally permitted. BlockBeats previously reported that on July 8, cryptocurrency trading platform Blockchain.com faced $270 million in losses on loans to Sanarrow Capital, according to Coindesk. "Blockchain.com remains liquid, solvent, and our customers will not be affected," Peter Smith, CEO of cryptocurrency exchange platform Blockchain.com, said in a June 24 shareholder letter.

On July 20, Court documents relating to the bankruptcy of Three Arrows Capital may have overestimated the value of the company's remaining assets, particularly its exposure to Deribit, a crypto options exchange, Cointelegraph reported, citing people familiar with the matter. The Deribit stake is worth $500 million, or half of Sanarrow's remaining assets, according to court filings. However, one person close to the situation said the stake was worth only close to $25m, not $500m. The difference was due to the type of exposure three Arrows had to Deribit, the person said. Sanarrow does not directly own a stake in Deribit, but in a Singapore special purpose vehicle called 3AC QCP Deribit SPV. The largest shareholders of 3AC QCP Deribit SPV are Three Arrows Capital and QCP Soteria Node, a holding company whose portfolio includes Algorand and PundiX, according to its website. Directors of 3AC QCP Deribit SPV include Sherwin Lee, founder of QCP Soteria Node, Darius Sit, co-founder of QCP Capital, and Zhu Su, co-founder of Three Arrows Capital. 3AC QCP Deribit SPV owns more than 23 percent of Deribit, making it the largest external shareholder, the people further explained. With a 16% stake, Sanarrow Capital is the largest shareholder in 3AC QCP Deribit SPV. Sources said the value of the SPV shares was significantly lower than the direct Deribit shares due to several significant encumbrances, and the owners of the SPV shares could not sell or transfer the Deribit shares without unanimous consent. Their shares need to be valued at a "substantial discount" because of these potential encumbrances.

BlockBeats, July 20, according to Decrypt, according to an affidavit filed in court by Kyle Davies, co-founder of Three Arrows Capital, Zhu Su, co-founder of Sanarrow Capital, owns shares worth $1.4bn in offshore funds that pool the firm's crypto assets. In addition, Davies said Three Arrows capital owes his wife, Chen Kaili Kelly, $65 million.

"As part of its liquidity and money management services, the Foundation has previously entered into a loan agreement with Sanarrow Capital, which is not expected to have a material impact on its business operations," Moonbeam said on July 19 in response to the company's default on more than $27 million in debt payments. Three Arrows Capital is one of several providers that the Foundation uses for such management services, and the loan agreement represents only a portion of the foundation's account."

On July 19, Messari founder Ryan Selkis said on social media that Genesis lost $1.2 billion due to Three Arrows Capital, Likely to exceed Digital Currency Group's (DCG) historical total net revenue. Based on back-of-the-envelope calculations, Grayscale's total net income is about $1 billion, and Ryan estimates Genesis will generate $50 million in revenue in 2020, assuming revenue grew fivefold last year and maintained a 30% profit margin, which won't cover its $200 million debt shortfall. It was previously reported that cryptocurrency broker Genesis Global Trading had filed a $1.2bn claim against the now-defunct Three Arrows capital. Genesis's parent company, Digital Currency Group (DCG), has assumed some of Genesis's debt in the case, but it is unclear how much of the debt is still held by Genesis.

BlockBeats, July 19. According to CoinDesk, Three Arrows owes the Moonbeam Foundation over $27 million, Including $17 million Stablecoin and a current market value of about $10 million Moonbeam issued Token. The latter was specifically 10 million GLMR and 200,000 MOVR.

TPS Capital received a $20 million loan from Arrakis Capital in late April and defaulted in mid-June, according to court documents, with Sanjian acting as the guarantor of the TPS Capital loan. Zhu Su is understood to own more than 40 per cent of TPS's British Virgin Islands entity. Previously, TPSCapital stated that it is a separate legal entity, that its business is separate and distinct from that of Sanarrow Capital, that it is operated by a separate management team, and that it operates its business without the involvement of Sanarrow Capital or its principals, who are only TPS clients.

On July 19, Soldman Gachs, a creditor of Sanjian Capital, posted on social media that according to information obtained from the liquidators' meeting of Sanjian Capital today, the liquidators are currently acquiring accounts from fund managers, counterparties, banks and others. Sanarrow's capital assets include bank account balances, directly held cryptocurrencies, underlying stakes in projects and NFT. But Three Arrows does not currently own any Bitcoin or Ethereum. In addition, Three Arrows' current claims total $2.8 billion. But many creditors have yet to file claims or quantify their claims for confidentiality reasons. That number is expected to rise sharply.

On July 19, The Block reported, citing people familiar with The matter, that a creditors' committee of Three Arrows Capital has been formed. Creditors voted based on their voting rights (The size of their debt) and finally elected five members of The committee. They are Digital Currency Group (DCG), Voyager, CoinList, Blockchain.com and Matrixport. It was previously revealed that Sanarrow capital owes 27 cryptocurrency companies $3.5 billion. The biggest creditor on the list is Genesis, which lent $2.3 billion to 3 AC.