According to “well-placed sources,” speaking with The Block reporter Frank Chaparro, the digital currency hedge fund known as Three Arrows Capital (3AC) may be facing insolvency after significant liquidations. Sources say that the 3AC “liquidation totaled at least $400 million” and the hedge fund’s founder Su Zhu tweeted about “communicating with relevant parties” Tuesday evening (ET).
‘Well-Placed Sources’ Say Three Arrows Capital Was Liquidated for at Least $400 Million, Hedge Fund Allegedly Maintains ‘Limited Contact With Its Counter-Parties’
Three Arrows Capital Ltd. was founded to manage crypto-hedge funds. Su Zhu Kyle DaviesA recent report suggests that 2012 might be the year of financial insolvency. The Block’s Frank Chaparro reported that sources remarked 3AC may have been liquidated for roughly $400 million. The sources also noted that 3AC has “maintained limited contact with its counter-parties since being liquidated.” Dune Analytics data indicates that 3AC’s portfolio allocation is around $372.47 million and that has seen a 24-hour change of around $139.12 million.
While 3AC’s portfolio consists of tokens like AAVE, BAT, CEL, FTT, GUSD, LIDO, and LINK, currently $166 million is now in usd coin (USDC). As the hedge fund has $46.3 million, serum (SRM), is second in 3AC’s allocation. 3AC was also involved in Terra, a token ecosystem. It allegedly suffered substantial capital losses due to the LUNA/UST fallsout. 3AC’s co-founder Su Zhu spoke vaguely about the situation as 3AC has not yet provided any official information.
“We are in the process of communicating with relevant parties and fully committed to working this out,” the 3AC co-founder said. Su Zhu hadn’t tweeted since June 7th, prior to that message. Numerous investors in crypto have asked Su Zhu questions. However, Su Zhu has not responded to their tweets. Kyle Davies, the other 3AC cofounder, also stopped tweeting in June 9.
3AC liquidations, and possibly insolvency are not good news for crypto communities at the moment. Especially because of the problems surrounding Celsius, Justin Sun’s and Tron’s wobbly USDD stablecoin, Microstrategy’s major losses, and the upcoming Federal Reserve meeting that may see one of the largest federal funds rate hikes in history. Amid all this doom and gloom, the global economy looks extremely dark and inflation is wreaking havoc on the world’s citizens, after a myriad of governments pumped trillions into the global economy over the last two years.
How do you feel about this report that Three Arrows Capital was subject to significant liquidations, and could be bankrupt? Comment below and let us know how you feel about the subject.
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