Sanjian Capital’s One-Page Statement Raises Doubts on the Crypto Hedge Fund’s Due Diligence and Loan Portfolio

03/01/2023 10:46 • Metaverse Matters • 169 views

According to reports, court documents submitted on Tuesday showed that just a few weeks before filing for bankruptcy, the crypto hedge fund Sanjian Capital (3AC) sent a one-page statement of net asset value (NAV) to the lending agency Voyager Digital. Voyager said that it had lent $654 million to 3AC, accounting for nearly 58% of its loan portfolio. During this period, both parties only conducted one due diligence.

During the period of Voyager’s loan of US $654 million to 3AC, both parties only conducted one due diligence

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Sanjian Capital, also known as 3AC, has been in the news lately due to its recent bankruptcy filing. However, the latest reports have raised doubts on the due diligence conducted by the crypto hedge fund and its loan portfolio. According to court documents submitted on Tuesday, just a few weeks before filing for bankruptcy, Sanjian Capital sent a one-page statement of net asset value (NAV) to Voyager Digital, its lending agency. Voyager said that it had lent $654 million to 3AC, which accounted for nearly 58% of its loan portfolio. During this period, both parties only conducted one due diligence, which is alarming.

The one-page statement has been deemed insufficient by industry experts as it lacks detailed information on Sanjian Capital’s NAV. It is indeed surprising that Voyager Digital accepted the one-page statement, considering the amount of money it lent to 3AC. The lack of scrutiny by Voyager Digital when it came to Sanjian Capital’s NAV statement is quite concerning, and it raises questions on the credibility of the lending agency.

Furthermore, the fact that Sanjian Capital accounted for a significant portion of Voyager Digital’s loan portfolio raises concerns about the latter’s lending practices. Voyager Digital’s management of its loan portfolio and its due diligence process must be reviewed to ensure that this does not happen again.

The recent development has once again highlighted the need for transparency and proper governance in the cryptocurrency industry. While cryptocurrencies have gained popularity over the years, they are still viewed with skepticism due to their volatile nature. The industry needs to ensure that proper regulations and safe practices are in place to safeguard the interests of investors and stakeholders.

In conclusion, Sanjian Capital’s one-page statement and Voyager Digital’s lending practices have raised serious doubts on the due diligence conducted by the parties involved. The events that unfolded emphasize the importance of transparency and credibility in the cryptocurrency industry. Regulators must step in to prevent such incidents from happening in the future, which can damage the industry’s reputation as a trustworthy investment option.

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