Limited Contact With Its Counter-Parties Allegedly Maintain Hedge fund
“Limited Contact With Its Counter-Parties”,
The digital currency Hedge firm Three Arrows Capital (3AC) may be on the edge of insolvency following major liquidations. According to sources, the 3AC "liquidation amounted to at least $400 million," and the founder of hedge fund’s Su Zhu tweeted on Tuesday evening that they are communicating with relevant parties.
According to a source, Su Zhu and Kyle Davies founded crypto hedge fund Three Arrows Capital Ltd in 2012 is now on the edge of bankruptcy, and also the Block's Frank Chaparro that 3AC may have been sold for around $400 million. 3AC has “Since being liquidated, it has maintained very little contact with its counterparties." According to Dune Analytics, 3AC's portfolio allocation is around $372.47 million, with a change of around $139.12 million in the last 24 hours.
While 3AC's portfolio includes tokens such as AAVE, BAT, CEL, FTT, GUSD, LIDO, and LINK, now $166 million is held in USD currency (USDC). The hedge fund holds $46.3 million in serum (SRM), which is the second-largest 3AC allocation.
3AC has also been invested in the Terra ecosystem of tokens, and it is said to have lost a significant amount of money as a result of the LUNA and UST fallout.
In the meantime, 3AC co-founder Su Zhu made a false statement about the situation because there has been no official word from the hedge fund about the possibility of it going bankrupt.
Su Zhu said that "We're in the process of communicating with relevant parties and are fully committed to working this out," he said this before giving that statement, he hadn't tweeted, since june 7. Su Zhu did not respond to any tweets from crypto investors who had questions about the statement, Kyle Davies has also stopped tweeting after 9 june.
The selloffs of 3AC and the possibility of insolvency do not look well for the crypto community right now. Especially given the issues with Celsius, Justin Sun's and Tron's wobbly USDD stablecoin, Microstrategy's massive losses, and the forthcoming Federal Reserve meeting, which could result in one of the highest federal funds rate hikes in history. After all of the nations put trillions into the global economy over the previous two years, the global economy appears incredibly bleak, and inflation is causing havoc on the world's inhabitants.
