1 big thing: Three Arrows Capital in liquidation

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2. The BFD: Pinterest gets a fintech CEO

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3. He says, he says ... 

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4. Credit score

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5. Deals of the day

Situational awareness: Axios Media Pro reporters Tim Baysinger and Kerry Flynn are digging into the media landscape on Thursday at 12:30pm ET with DoubleVerify CEO Mark Zagorski and Standard General chief investment officer Soo Kim. Make sure you don't miss it.

 Tell your fintech friends, family, crypto pals, and others about this newsletter. They can sign up here.

Fintech Deals

1 big thing: Deel goes on the M&A offensive

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2. The BFD: SumUp's winter war chest

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3. Credit score

4. Deals of the day

5. It's personnel

6. Memes and mumbles

Situational awareness: On Monday at 4pm ET, our Axios Pro colleague Sarah Pringle will be hosting a conversation on health tech investment trends with General Atlantic healthcare chief Robb Vorhoff. Register here.

Tell your fintech friends, family, crypto pals, and others about this newsletter. They can sign up here.

1 big thing: FTX looks into the HOOD

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2. The BFD: CoinFLEX's mysterious debtor

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🛒 Situational awareness: You're invited to a live interactive conversation today at 12:45pm ET between Axios Pro's Retail Deals reporters, Jonathan Duskin, CEO of Macellum Capital Management (the activist pressuring Kohl's), and Eva Press, vice president of Meta's global business group.

1 big thing: Everyone's feeling it

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2. The BFD: Three Arrows defaults

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🚨 Situational awareness: After the Supreme Court's decision to strike down the federal constitutional right to abortion, several U.S. big banks are saying they will pay for employees to travel for the procedure.

1 big thing: Insurtech pains and gains

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2. The BFD: Pine Labs gets embedded

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3. Ripple says it'll leave the U.S. if it loses case

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Happy Friday, fintech deals readers. We made it!

🚨 Situational awareness: The Harmony Protocol team identified a theft of $100 million on its Horizon bridge, with assets stolen on both the Ethereum and Binance Smart Chains.

According to blockchain analytics firm Elliptic, more than $1 billion has been stolen from cross-chain bridges this year.

Voyager Digital (TSX: VOYG) issued a notice of default to Three Arrows Capital on Monday after the latter missed its deadline to repay a $674 million loan.

Why it matters: It's yet another bad sign for the crypto hedge fund that had a relatively clean reputation in the industry until a few weeks ago. 

It's also not a particularly good sign for Voyager Digital or 3AC's other creditors. In a press release, Voyager noted, "It is uncertain what amount Voyager will be able to recover from 3AC for non-payment." 

Details: Voyager Digital has said 3AC owes it 15,250 bitcoins and $350 million in USDC stablecoins. 

It gave the hedge fund until June 24 to repay $25 million in USDC and until today to repay the full amount. Neither of those deadlines were met.

Now Voyager is contemplating legal action, and may be considering some restructuring of its own, having retained Moelis & Co. as a financial adviser.

Notably,  options 3AC has been considering include asset sales and a bailout by other firms, per the WSJ. Voyager, meanwhile, got a credit line from Alameda Ventures totaling about $520 million.

The big question: There's already been a contagion effect from 3AC's failures. The question is how big the contagion will be.

3AC defaults on $674 million Voyager Digital loan

Fintech

Voyager Digital (TSX: VOYG) issued a <a class="gtmContentClick" data-vars-link-text="notice of default" data-vars-click-url="https://www.prnewswire.com/news-releases/voyager-digital-provides-market-update-301575492.html" data-vars-content-id="360c7c4e-16ff-40ff-a58d-3bf342866f6e" data-vars-headline="3AC defaults on $674 million Voyager Digital loan" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.prnewswire.com/news-releases/voyager-digital-provides-market-update-301575492.html" target="_blank">notice of default</a> to Three Arrows Capital on Monday after the latter missed its deadline to repay a $674 million loan.Why it matters: It&#x27;s yet another bad sign for the crypto hedge fund that had a relatively clean reputation in the industry until a few weeks ago. <ul><li>It&#x27;s also not a particularly good sign for Voyager Digital or 3AC&#x27;s other creditors. In a press release, Voyager noted, &quot;It is uncertain what amount Voyager will be able to recover from 3AC for non-payment.&quot; </li></ul>Details: Voyager Digital has said 3AC owes it 15,250 bitcoins and $350 million in USDC stablecoins. <ul><li>It gave the hedge fund until June 24 to repay $25 million in USDC and until today to repay the full amount. Neither of those deadlines were met.</li><li>Now Voyager is contemplating legal action, and may be considering some restructuring of its own, having retained Moelis &amp; Co. as a financial adviser.</li><li>Notably, options 3AC has been considering include asset sales and a bailout by other firms, per <a class="gtmContentClick" data-vars-link-text="the WSJ" data-vars-click-url="https://www.wsj.com/articles/battered-crypto-hedge-fund-three-arrows-capital-considers-asset-sales-bailout-11655469932" data-vars-content-id="360c7c4e-16ff-40ff-a58d-3bf342866f6e" data-vars-headline="3AC defaults on $674 million Voyager Digital loan" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.wsj.com/articles/battered-crypto-hedge-fund-three-arrows-capital-considers-asset-sales-bailout-11655469932" target="_blank">the WSJ</a>. Voyager, meanwhile, got a credit line from Alameda Ventures totaling about $520 million.</li></ul>The big question: There&#x27;s already been a contagion effect from 3AC&#x27;s failures. The question is how big the contagion will be.

Bloomberg reported yesterday that crypto giant FTX was weighing options to acquire Robinhood, the stock-trading company that has struggled to regain its pandemic-era prominence.

Why it matters: Investors traded aggressively on the news, with shares of Robinhood jumping 14% yesterday.  

In response: FTX released a statement following the story's release that appeared to deny the contents of the article ... but didn't really.

"We are excited about Robinhood's business prospects and potential ways we could partner with them, and I have always been impressed by the business that Vlad and his team have built," FTX CEO Bankman-Fried said in a statement. "That being said there are no active M&A conversations with Robinhood."

Between the lines: The Bloomberg story claimed that FTX held internal discussions about a potential acquisition, not that it had held M&A conversations with Robinhood.

When asked if the company had held internal discussions about an acquisition, FTX was more evasive. "We can neither confirm nor deny," the spokesperson said.

Strategically speaking, an acquisition of Robinhood wouldn't be insane for FTX. The latter has been building out its U.S. business and stepping aggressively into stocks.

Robinhood was predictably mum on the whole story: "We're not going to be commenting on speculation," a spokesperson responded.

Yes, but: There's a few more steps to go before an acquisition. Namely, the two sides need to actually be in talks — and that currently does not appear to be the case.

There's also the big question of whether Robinhood's two founders, who hold 63% of the voting power in the company, want to sell.

Keeping track: In the spring, Bankman-Fried spent about $648.3 million to buy the initial stake in Robinhood. That stake is now worth $508.7 million.

That, however, is not a bad thing if the end game is to buy Robinhood. The lower the stock price goes — and the longer it stays that way — the more likely it is that Robinhood sells.

Bottom line: There's several more steps before we get into real M&A territory for Robinhood and FTX. That's not to say a deal can't happen, just that it's early.

But two things remain true: Investors are watching closely for who could acquire Robinhood, and FTX is set to be a major fintech sector dealmaker in coming months.

Takeaways from FTX's reported interest in acquiring Robinhood

More FTX-Robinhood chatter is certain to come.

<a class="gtmContentClick" data-vars-link-text="Bloomberg" data-vars-click-url="https://www.bloomberg.com/news/articles/2022-06-27/bankman-fried-s-ftx-said-to-be-seeking-path-for-robinhood-deal?stream=top&amp;utm_campaign=newsletter_axioscloser&amp;utm_medium=email&amp;utm_source=newsletter#xj4y7vzkg" data-vars-content-id="88c7159d-9b8c-4d21-b6f6-2152c4f61190" data-vars-headline="Takeaways from FTX&#x27;s reported interest in acquiring Robinhood" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.bloomberg.com/news/articles/2022-06-27/bankman-fried-s-ftx-said-to-be-seeking-path-for-robinhood-deal?stream=top&amp;utm_campaign=newsletter_axioscloser&amp;utm_medium=email&amp;utm_source=newsletter#xj4y7vzkg" target="_blank">Bloomberg</a> reported yesterday that crypto giant FTX was weighing options to acquire Robinhood, the stock-trading company that has struggled to regain its pandemic-era prominence.Why it matters: Investors traded aggressively on the news, with shares of Robinhood jumping 14% yesterday. In response: FTX released a statement following the story&#x27;s release that appeared to deny the contents of the article ... but didn&#x27;t really.

Three Arrows Capital, the beleaguered crypto hedge fund, has been ordered into liquidation by a court in the British Virgin Islands, Sky News first reported.

Teneo Restructuring, an advisory firm, has been appointed to handle the liquidation, a source with knowledge of the matter confirms to Axios.

Why it matters: Being ordered into liquidation will put a more standard process in place for Three Arrows and its creditors at a time when some of the fund's lenders appear confused and say they have had little communication from the investor.

This also means Teneo is now in control of 3AC's assets, rather than founders Kyle Davies and Su Zhu.

Details: Teneo is taking stock of what 3AC actually owns and is expected to collect information on 3AC's creditors and debtors via a website in coming days, the source says.

Known creditors include Voyager Digital, a company that has said it is owed about $674 million.

Three Arrows' fund is incorporated in the British Virgin Islands.

Of note: The liquidation process is in its early stages, meaning the creditors are probably in for a long haul.

3AC has not yet responded to a request for comment.

Three Arrows Capital enters liquidation

The court order puts Teneo in control of 3AC's assets.

Three Arrows Capital, the beleaguered crypto hedge fund, has been ordered into liquidation by a court in the British Virgin Islands, <a class="gtmContentClick" data-vars-link-text="Sky News" data-vars-click-url="https://news.sky.com/story/crypto-hedge-fund-three-arrows-capital-plunges-into-liquidation-12642402" data-vars-content-id="c7eea94e-56ea-43d9-9134-66e7dc24a745" data-vars-headline="Three Arrows Capital enters liquidation" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://news.sky.com/story/crypto-hedge-fund-three-arrows-capital-plunges-into-liquidation-12642402" target="_blank">Sky News</a> first reported.<ul><li>Teneo Restructuring, an advisory firm, has been appointed to handle the liquidation, a source with knowledge of the matter confirms to Axios.</li></ul>Why it matters: Being ordered into liquidation will put a <a class="gtmContentClick" data-vars-link-text="more standard process" data-vars-click-url="https://www.axios.com/pro/fintech-deals/2022/06/27/3ac-defaults-on-674-million-voyager-digital-loan" data-vars-content-id="c7eea94e-56ea-43d9-9134-66e7dc24a745" data-vars-headline="Three Arrows Capital enters liquidation" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/fintech-deals/2022/06/27/3ac-defaults-on-674-million-voyager-digital-loan" target="_self">more standard process</a> in place for Three Arrows and its creditors at a time when some of the fund&#x27;s lenders appear confused and say they have had little communication from the investor.<ul><li>This also means Teneo is now in control of 3AC&#x27;s assets, rather than founders Kyle Davies and Su Zhu.</li></ul>Details: Teneo is taking stock of what 3AC actually owns and is expected to collect information on 3AC&#x27;s creditors and debtors via a website in coming days, the source says.<ul><li>Known creditors include Voyager Digital, a company that has said it is <a class="gtmContentClick" data-vars-link-text="owed about $674 million" data-vars-click-url="https://www.axios.com/pro/fintech-deals/2022/06/27/3ac-defaults-on-674-million-voyager-digital-loan" data-vars-content-id="c7eea94e-56ea-43d9-9134-66e7dc24a745" data-vars-headline="Three Arrows Capital enters liquidation" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/fintech-deals/2022/06/27/3ac-defaults-on-674-million-voyager-digital-loan" target="_self">owed about $674 million</a>.</li><li>Three Arrows&#x27; fund is incorporated in the British Virgin Islands.</li></ul>Of note: The liquidation process is in its early stages, meaning the creditors are probably in for a long haul.<ul><li>3AC has not yet responded to a request for comment.</li></ul>

CoinFLEX, a crypto lender, is planning to sell about $47 million in tokens in the hope of restarting withdrawals, CEO Mark Lamb wrote in a Tuesday blog post. 

The token, rvUSD, will offer 20% annual returns.

Why it's the BFD: CoinFLEX halted withdrawals about a week ago after a single, major, longtime customer failed to repay debt — highlighting the weak risk-controls dogging several crypto lenders. 

Details: CoinFLEX isn't disclosing the customer's identity, only that this "individual is a high-integrity person of significant means, experiencing temporary liquidity issues due to a credit (and price) crunch in crypto markets (and non-crypto markets), with substantial shareholdings in several unicorn private companies and a large portfolio."

Usually, CoinFLEX says it would auto-liquidate the customer's position, but the two sides had an agreement that prevented that from happening.

The company has previously said the customer is not the beleaguered hedge fund, Three Arrows Capital.

Background: Polychain Capital, Electric Capital, and Digital Currency Group back CoinFLEX.

Why (the customer's identity) matters: CoinFLEX plans to payout rvUSD holders primarily via this one customer repaying debt. And without a clear idea of who the customer is, rvUSD holders will have to trust CoinFLEX's trust in said customer. And, again, there's no guarantee CoinFLEX will be repaid in full. 

Still, CoinFLEX says it has "spoken to potential large buyers" and believes "there is significant interest in the terms presented."

Who is CoinFLEX's mystery debtor?

CoinFLEX paused withdrawals after the debtor failed to repay.

CoinFLEX, <a class="gtmContentClick" data-vars-link-text="a crypto" data-vars-click-url="https://coinflex.com/blog/coinflexs-solution-to-resume-withdrawls" data-vars-content-id="e6f5a69d-4f47-492b-93bb-b237fcf6d099" data-vars-headline="Who is CoinFLEX&#x27;s mystery debtor?" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://coinflex.com/blog/coinflexs-solution-to-resume-withdrawls" target="_blank">a crypto</a> lender, is planning to sell about $47 million in tokens in the hope of restarting withdrawals, CEO Mark Lamb wrote in a <a class="gtmContentClick" data-vars-link-text="Tuesday blog post" data-vars-click-url="https://coinflex.com/blog/coinflexs-solution-to-resume-withdrawls" data-vars-content-id="e6f5a69d-4f47-492b-93bb-b237fcf6d099" data-vars-headline="Who is CoinFLEX&#x27;s mystery debtor?" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://coinflex.com/blog/coinflexs-solution-to-resume-withdrawls" target="_blank">Tuesday blog post</a>. <ul><li>The token, rvUSD, will offer 20% annual returns.</li></ul>Why it&#x27;s the BFD: CoinFLEX halted withdrawals about a week ago after a single, major, longtime customer failed to repay debt — highlighting the weak risk-controls dogging several crypto lenders.

Nick Fox, the vice president who heads up Google's long-term bets, will takeover Google's commerce, payments, and Next Billion Users businesses on an interim basis, Axios has learned. This change comes after Tuesday's news his predecessor, Bill Ready, will become CEO at Pinterest.

Why it matters: Google has access to an enormous pool of users, with an estimated 3.4 billion on its Chrome browser alone. Any commerce or payments product it could make would be a potential threat to other fintechs and e-commerce tech businesses.

Of note: On the payments side at least, Google has faced a lot of turmoil in recent years, muddying the company's ability to deliver its past vision. In March 2021, Caesar Sengupta said he would leave after 15 years with the company, which led to several others also exiting.

It was after Sengupta's exit that Ready's role at Google — in which commerce and payments were run by one person — came into existence.

That fits into a broader strategy for Google, in which it seeks to work with merchants and banks rather than as direct competitors to them. It has also sought to more closely tie its maps, e-commerce, ads, and payments products together.

Background: In nearly 20 years with the company, Fox has held a variety of roles. At one point, he helmed up the company's communication products, including Google Voice and Hangouts, as well as its Adwords unit.

Fox will continue to report to Prabhakar Raghavan, senior vice president at Google. Raghavan was previously overseeing Ready, too.

His most recent title was vice president for product and design, search and assistant

“Bill has played a key role in setting a new vision and strategy for Commerce and Payments at Google," a Google spokesperson tells Axios. "We will continue building on this strong foundation to make helpful, commerce experiences universally accessible for our users and our partners."  

Scoop: Nick Fox to assume Bill Ready's Google role

Fox will lead commerce, payments and next billion segments.

Nick Fox, the vice president who heads up Google&#x27;s long-term bets, will takeover Google&#x27;s commerce, payments, and Next Billion Users businesses on an interim basis, Axios has learned. This change comes after <a class="gtmContentClick" data-vars-link-text="Tuesday&#x27;s news" data-vars-click-url="https://www.wsj.com/articles/pinterest-ceo-is-stepping-down-google-commerce-executive-to-take-top-job-11656446701?mod=latest_headlines" data-vars-content-id="fb98f299-e408-4bc2-9b9b-4cc773ccf095" data-vars-headline="Scoop: Nick Fox to assume Bill Ready&#x27;s Google role" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.wsj.com/articles/pinterest-ceo-is-stepping-down-google-commerce-executive-to-take-top-job-11656446701?mod=latest_headlines" target="_blank">Tuesday&#x27;s news</a> his predecessor, Bill Ready, will become CEO at Pinterest.Why it matters: Google has access to an enormous pool of users, with an estimated 3.4 billion on its Chrome browser alone. Any commerce or payments product it could make would be <a class="gtmContentClick" data-vars-link-text="a potential threat" data-vars-click-url="https://www.axios.com/pro/fintech-deals/newsletters/2022/05/12/fintech-googles-payments-play" data-vars-content-id="fb98f299-e408-4bc2-9b9b-4cc773ccf095" data-vars-headline="Scoop: Nick Fox to assume Bill Ready&#x27;s Google role" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/fintech-deals/newsletters/2022/05/12/fintech-googles-payments-play" target="_self">a potential threat</a> to other fintechs and e-commerce tech businesses.

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Stories

Three Arrows Capital enters liquidation

Scoop: Nick Fox to assume Bill Ready's Google role

Takeaways from FTX's reported interest in acquiring Robinhood

Who is CoinFLEX's mystery debtor?

3AC defaults on $674 million Voyager Digital loan

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Fintech: Crypto liquidation

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Fintech: What normal?

Fintech: Diagnosing insurtech

Fintech: Let's make a Deel