Credit checks, what credit checks? How crypto lending ate itself

Collapse of hedge fund Three Arrows Capital exposes “sloppy and irresponsible” credit standards among crypto lenders

“Fortune favours the brave,” the actor Matt Damon declared in a commercial for Crypto.com that aired during last year’s Superbowl broadcast in the US.

Among crypto investors, few were ‘braver’ than Three Arrows Capital. The Singapore-based hedge fund borrowed more than $3.6 billion from nearly three dozen lenders to finance big bets on cryptocurrencies and digital tokens. When the crypto market crashed, 3AC defaulted on the loans, taking two of its lenders – Celsius and Voyager, which filed for

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