Investors Ready to Pounce on Three Arrows, FTX Startup Stakes as Sales Gear Up

Now-bankrupt crypto firms that had been active venture investors will be looking to sell off anything they can to repay creditors—a situation that could soon create a broad reshuffling of investments.

First out the gate could be crypto hedge fund Three Arrows Capital, which had invested in at least 40 blockchain projects before it imploded in July. Some of its largest stakes include Aptos Labs, dYdX and WorldCoin. Liquidators plan to start the sale process for its investments within three months, a person familiar with the matter told The Information.

Three Arrows’ venture investments are already drawing interest from potential buyers ranging from crypto venture capital firms to investors that have experience with distressed assets, and the same scenario will likely play out with FTX and other bankruptcies. Startups themselves are also hoping to buy shares back and keep control over who is on their cap table.