NewsletterBreaking: 20K Staked ETH (stETH) Worth $33 Mln Removed From Curve
Bankrupt hedge fund Three Arrows Capital on Tuesday removed nearly 20,945 stETH worth nearly $33.76 million from Curve ETH liquidity pool. Three Arrows has also withdrawn 203 WBTC, 4,051,368 USDT, and 2462 WETH from Curve.
Three Arrows Capital Withdraws Staked Ether (stETH) Again
According to Etherscan data, an address marked as “Three Arrows Capital” by Nansen has removed staked ETH (stETH) worth nearly $33.76 million from the Curve liquidity pool on September 6. The address currently holds 9,405 ETH, 20,948 stETH, and other tokens, worth a total of $57 million.
The hedge fund also removed 203 WBTC worth $4.04 million, 4,051,368 USDT worth $4.05 million, and 2,462 WETH worth $4.08 million. Thus, Three Arrows Capital (3AC) has withdrawn nearly $45 million from the Curve liquidity pool. Also, the wallet transactions data reveals nearly $9 million wrapped staked ETH was unwrapped on August 26.
As per a Dune dashboard, 29,435 CRV worth $34k and 31,276 LDO worth $69k were also swapped on CoW Swap. The hedge fund is most likely to convert the holdings into Ethereum (ETH) and transfer funds to other wallets. Moreover, Three Arrows still have stETH worth over $31 million in its wallets. The total value of the portfolio is $86.80 million.
Last week, Three Arrows Capital moved nearly 10k Ethereum (ETH) and over 1.5 million USDT from one of its wallets. The address transferred over 1.6 million USDT to OKX, Huobi, and Binance wallets.
Wallets belonging to Three Arrows Capital have become active months after the bankruptcy filing in July. Moreover, the amounts in the transactions have now jumped to over $10 million.
Another Liquidity Crisis Due to stETH Withdrawal
The last liquidity crisis in June triggered a contagion effect that caused insolvency and bankruptcy of crypto companies. These include Three Arrows Capital, Celsius Network, Babel Finance, Voyager, etc.
The liquidity crisis was sparked by the withdrawal of staked ETH (stETH) from liquidity pools. As a result, the stETH deviated from a 1:1 peg to Ethereum (ETH). In fact, the peg between stETH and ETH was never restored due to the crypto market crash and other macroeconomic factors.
Moreover, the stETH is crucial for the PoS Ethereum. A further deviation could have severe consequences for Merge and Ethereum.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Why is the LUNC Price Up 70% Despite the Crypto Market’s Decline?
- CoinShares Fires Back at Arthur Hayes, Dismisses Fears Over Tether Solvency
- Bitcoin Stalls Ahead of FOMC as Analyst Van de Poppe Sees No Break Until Tuesday
- Bitcoin Hyper Presale Review: How Utility is Unlocked With ZK-SVM Rollup
- Morgan Stanley Turns Bullish, Says Fed Will Cut Rates by 25bps This Month
- Ethereum Price Holds $3,000 as Bitmine Scoops Up $199M in ETH; What Next?
- Solana Price Outlook Strengthens as Spot ETFs See $15.68M in Fresh Inflows
- Dogecoin Price Gears Up for a $0.20 Breakout as Inverse H&S Takes Shape
- Bitcoin Price Forecast as BlackRock Sends $125M in BTC to Coinbase — Is a Crash Inevitable?
- XRP Price Prediction As Spot ETF Inflows Near $1 Billion: What’s Next?
- Solana Price Outlook: Reversal at Key Support Could Lead to $150 Target
