Sanjian Capital’s Woes: A Cautionary Tale for Crypto Hedge Funds

03/01/2023 10:46 • Digital Disruptors • 86 views

According to reports, court documents submitted on Tuesday showed that just a few weeks before filing for bankruptcy, the crypto hedge fund Sanjian Capital (3AC) sent a one-page statement of net asset value (NAV) to the lending agency Voyager Digital. Voyager said that it had lent $654 million to 3AC, accounting for nearly 58% of its loan portfolio. During this period, both parties only conducted one due diligence.

During the period of Voyager’s loan of US $654 million to 3AC, both parties only conducted one due diligence

Analysis based on this information:

Sanjian Capital, also known as 3AC, is a Hong Kong-based crypto hedge fund that made headlines recently after filing for bankruptcy. According to court documents submitted on Tuesday, just a few weeks before filing for bankruptcy, the fund sent a one-page statement of net asset value (NAV) to the lending agency Voyager Digital. Voyager said that it had lent $654 million to 3AC, accounting for nearly 58% of its loan portfolio.

This news has sent shockwaves throughout the cryptocurrency world as Sanjian Capital was highly regarded as a successful and well-established crypto hedge fund. The recent filing for bankruptcy has left many questioning what went wrong for the fund.

It appears that the issue may have stemmed from their dealings with Voyager Digital. During the period when Voyager lent the $654 million, both parties only conducted one due diligence. This lack of prudence on both sides may have contributed to the fund’s downfall.

The situation reinforces the need for due diligence before engaging in any transaction in the crypto world. The cryptocurrency market is highly volatile, and investors must perform their due diligence to avoid being left with massive losses.

Sanjian Capital’s woes serve as a cautionary tale for other crypto hedge funds, highlighting the importance of transparency, accountability and risk mitigation in the highly speculative and unregulated crypto world. While the appeal of the crypto world may lure investors, it is crucial to remain cautious, informed and vigilant in dealing with digital assets.

In conclusion, Sanjian Capital’s bankruptcy highlights the importance of caution and due diligence in the crypto world. Other crypto hedge funds should learn from this cautionary tale and take steps to minimize the risks inherent in such high-risk investments.

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Sanjian Capital’s Woes: A Cautionary Tale for Crypto Hedge Funds

During the period of Voyager’s loan of US $654 million to 3AC, both parties only conducted one due diligence

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