Three Arrows borrowed billions with little collateral and lost $4.2 billion
Three Arrows Capital · Crypto hedge fund (private)
The case in brief
Visible before detection
Checks that could have surfaced it, on hindsight
Third-party confirmation
Would have confirmed assets held at exchanges and custodians.
Can mislead when: Counterparties can collude or ignore requests. A non-response is logged as a gap, never as a pass.
Collateral & double pledge
Would have shown the same assets pledged to more than one lender.
Can mislead when: Pledges made off the registries stay invisible, and vague invoice descriptions are hard to match.
Regulatory & litigation records
Would have checked regulatory registrations.
Can mislead when: Court records lag and name spellings vary. A clean record can mean the problem has not reached court yet.
Where Kubr services would have helped
Valuation context
Offered in India- C8 Would have checked regulatory registrations.
Verified Snapshot
Offered in India- C8 Would have checked regulatory registrations.
- C13 Would have shown the same assets pledged to more than one lender.
Legal diligence support
Offered in India- C8 Would have checked regulatory registrations.
- C13 Would have shown the same assets pledged to more than one lender.
Rating history
Offered in India- C8 Would have checked regulatory registrations.
- C13 Would have shown the same assets pledged to more than one lender.
Mapped from the checks each service runs. A hindsight reading of public records, not a promise that the failure would have been found.
Same pattern
A summary of public documents. It reports what the sources say. It is not Kubr's finding and not a statement of guilt.