🐡 Another big crypto fish is bout to go down…and India’s FM is at it again

Kaise ho degens? This is your one and only Doodhwala, your forever optimist about the crypto space. Our glass (pronounced geeelas) is always half full of…doodh. And we’re here to share it with you…because good karma and all.

Here’s what we’ve got for you today:

• 3AC is bringing down the house…and another big fish

• India playing ping-pong with crypto

• Meme of the day

• Tweetshots of the day

3AC is bring down the house…and another big fish

Ya’ll remember 3AC right?

Short for 3 Ah Crap! 3 Arrows Capital

The billion-dollar hedge fund that went under last month. At this point, they can pretty much write the book — “How to fuck up your crypto trades for dummies”

3AC’s court documents went public this week following liquidation hearings, and boy is it setting the stage for a 2G Scam-like debacle.

The most important finding is this — 3AC owes a massive $3.5 billion (Rs 28,000 crore) to creditors. And nearly 70% of that amount — $2.3 billion (Rs 18,000 crore) is owed to just one creditor, Genisis Trading.

And Genisis Trading is no small player either.

If you thought 3AC was small, Genisis makes 3AC look like Rajpal Yadav in front of The Great Khali.

Genisis Trading is part of The Digital Currency Group (DCG).

Think of DCG as the Adani Industries of crypto, they have their hands in a little bit of everything.

Here are a few companies within DCG:

• Coindesk

• Grayscale

• Luno

• Foundry

These are no small companies, to say the least. In fact, Grayscale held a whopping $43 billion (Rs 3.4 lakh crore) in assets under management at the end of 2021.

That’s more than the market capitalization of Kotak Mahindra Bank, Axis Bank, and Yess Bank.

Beyond the continued contagion effect, the ongoing results of the liquidation hearings are straight outta a movie.

Like I said earlier, 3AC owes $3.5 billion (Rs 28,000 crore) to creditors. These “creditors” are firms that gave them money to invest.

But did 3AC invest it all?

Lol no.

One of the founders, Su Zhu, bought a yacht for $50 million (Rs 400 crore) from the funds he borrowed from creditors.

The funny part is, this $50 million is straight outta the borrowings from Celsius Network. You know the same one that filed for bankruptcy last week?

3AC willfully used the money to buy nice things and brought down one big fist (Celsius) and soon another one might go down (Genisis > DCG).

Doodhwala’s take: This doesn’t look good for crypto, we thought the crypto contagion was over, but it’s just getting started. This is like when I found out that there is a sequel to Race. 😵‍💫

India playing ping-pong with crypto

India bans crypto.

India unbans crypto.

India wants to regulate crypto.

India wants to tax your crypto.

India wants to ban crypto. Again.

Damn. India’s stance on crypto changes faster than I eat gol gappas (or pani pooris, there ya happy?)

Recently, our central bank, the great and powerful RBI shared its view of prohibiting crypto in India.

Well, they have been sharing it for a long time now.

But this time, our Finance Minister, Nirmala Sitharaman joined that bandwagon and reiterated it.

What's the reason behind it?

Well, maybe like the rest of us, they are all down bad with their crypto portfolio and couldn't handle the pain. (wait, is it just me?)

Who knows!

One thing is for certain though.

They cant really “ban” crypto without a global consensus and a truly concerted effort.

And the chances of that happening is rarer than seeing a Sallu Bhai film where he DOESN’T rip his shirt off.

Doodhwala’s Take: They might ban trading crypto or they might not. But they cannot ban all crypto. The best way to keep custody of your crypto is by taking them off centralized exchanges and storing it in a cold wallet. #notfinancialadvice

Meme of the day 

Tweetshot of the day

That’s all for today peeps! Naale Sigona!

Aakash "Dahi Cheeni" Athawasya & Arvind "Doodh Peda" Krishna

Oh and beeteedubs, we’ve got the doodhwala.eth ENS name. So, for all the many many people who wanted it, you can kiss our tall doodh glasses. Jk jk. Get your Ethereum domain here.