Two Blockchain Sleazebags May Have Crashed the Entire Crypto Market

The market took over a decade, millions of investors, and a few Super Bowl ads. According to a new report from New York Magazine, the industry may have been brought to its knees by just two of the most notorious crypt bros.

Are these lowlives? According to the accusations, the founders of Three Arrow Capital are still missing. The pair over-borrowed and over-promised all the while sweeping insolvency under the rug. The market crash that caused a full trillion dollars to evaporate was caused by those who lent them millions and billions of dollars.

Sam Bankman- Fried, CEO of FTX, told NY Mag that he thought Three Arrow was responsible for 80 percent of the market crash. Prior to that, they had a lot more trust in the system.

The success of 3AC was built on heavy borrowing and social media influence. He made wild claims about market "supercycles" and urged his followers to just keep buying, no matter what the market was worth.

The pair appeared to have a complete front. They borrowed a lot of money from new investors in order to pay their old debts, and in retrospect it seems like they knew that their operation was not sustainable. It is a Ponzi scheme.

Lane Kasselman, chief business officer of the company, told NY Mag that the numbers they reported in May were incorrect. They definitely committed fraud. They lied and that's fraud.

The company lost $270 million in loans to 3AC and laid off 25% of its staff. Genesis Global Trading, which NY Mag says lent 3AC $2.8 billion, was one of the casualties.

It's possible that they're in hiding because they've been accused of borrowing money from organized crime. I'm sorry!

The 3AC's onetime billions have only been recovered by the Liquidators. Even if all of the money was recovered, it wouldn't be enough to reverse the dominos that the firm's eruption caused.

The pair in Singapore used to boast that they could borrow as much money as they wanted. From the way the fund was structured to the way it was established, this was all planned.

Davies replied to NY Mag's request for comment with an email that said "please note I am out of office at this time"

New York Magazine has a story about the geniuses who created the trillion dollar coin.

The cowardice of these horrible hedge fund executives has been brought to light.