People familiar with the matter: Sanarrow's Deribit stake is worth just $25 million, far less than the $500 million disclosed in court filings

On July 20, Court documents relating to the bankruptcy of Three Arrows Capital may have overestimated the value of the company's remaining assets, particularly its exposure to Deribit, a crypto options exchange, Cointelegraph reported, citing people familiar with the matter. The Deribit stake is worth $500 million, or half of Sanarrow's remaining assets, according to court filings. However, one person close to the situation said the stake was worth only close to $25m, not $500m. The difference was due to the type of exposure three Arrows had to Deribit, the person said. Sanarrow does not directly own a stake in Deribit, but in a Singapore special purpose vehicle called 3AC QCP Deribit SPV. The largest shareholders of 3AC QCP Deribit SPV are Three Arrows Capital and QCP Soteria Node, a holding company whose portfolio includes Algorand and PundiX, according to its website. Directors of 3AC QCP Deribit SPV include Sherwin Lee, founder of QCP Soteria Node, Darius Sit, co-founder of QCP Capital, and Zhu Su, co-founder of Three Arrows Capital. 3AC QCP Deribit SPV owns more than 23 percent of Deribit, making it the largest external shareholder, the people further explained. With a 16% stake, Sanarrow Capital is the largest shareholder in 3AC QCP Deribit SPV. Sources said the value of the SPV shares was significantly lower than the direct Deribit shares due to several significant encumbrances, and the owners of the SPV shares could not sell or transfer the Deribit shares without unanimous consent. Their shares need to be valued at a "substantial discount" because of these potential encumbrances.