3AC borrowed millions from Voyager/BlockFi user deposits, and bought CryptoDickButt NFT

Source: Reddit

3AC borrowed hundreds of millions from user's deposits through custodial agents like Voyager and BlockFi, and used it to recklessly gamble on all kinds of ridiculous crypto things, including "CryptoDickButt" NFT.

This is one of the wallets of 3AC, https://etherscan.io/address/0x2e675eeae4747c248bfddbafaa3a8a2fdddaa44b

Which you can see has been drained out of almost every penny except a bunch of illiquid NFT tokens that have no takers.


Proud owner of CryptoDickButt 1462

Some other priceless (rather worthless) NFTs that 3AC curated include Slacker Duck Pond, Gutter Cat Gang, Gutter Punks etc.

On other 3AC wallets including a NFT fund known as "Starry Night Capital", they have many more illiquid NFTs including "Shiboshis" which they bought for almost $10k each. Infact till April, they were buying up all the junk NFTs using the funds borrowed from retail investors via Voyager, BlockFi, and any other centralised lender that was happy to lend to them.

They bought this one for 800 eth worth over $2m at the time, and another one called "Arnolfrini Shrimp" for $130k!

The fact that these companies like Voyager kept lending out their customer's deposits to 3AC, who then used it to gamble degenerately on useless NFTs is utterly bewildering. Didnt they have any internal controls that would point out that the funds are being diverted to NFTs, when the bear market had already started?

 

The plot thickens...

I wonder if/when there will be a book out on this. You got a hedge fund on the run... the book alone would sell for millions.

 

This made my day.

 

Sounds like a Michael Lewis book!

 

Fortunately, only foolish gullible 3AC investors lose money

there is an endless supply of crypto things (coins, NFT ....)

also, there is an endless supply of foolish gullible investors.

 

I would have better luck having a hedge fund managed by ET members

 

99% of all crypto is vermin

 

As long as you're not the last one in line, it's forgivable.

 

so good i embed it twice.

 

Cuban should be embarrassed. Deposit $100 and trade it = get $100 from Voyager. Big red flag. Only online casinos can afford to do this kind of thing, as they are guaranteed, almost, to make profit on your activity. The only activity Voyager should have a guarantee is the fee for each trade. How else can they make that $100 back?