According to “reliable sources” speaking with The Block reporter Frank Chaparro, the digital currency hedge fund known as Three Arrows Capital (3AC) may be facing insolvency after a significant liquidation, according to sources. According to sources, 3AC’s “liquidation value is at least $400 million,” and the hedge fund’s founder, Su Zhu, tweeted Tuesday night (Eastern time) that he was “in contact with the relevant parties.”
Well-Placed Sources’ say Three Arrows Capital was Liquidated for at least $400 Million, Hedge Fund Allegedly Maintains ‘Limited Contact With Its Counter-Parties’
Well-Placed Sources’ say Three Arrows Capital was Liquidated for at least $400 Million, Hedge Fund Allegedly Maintains ‘Limited Contact with Counter-Parties’
The crypto hedge fund isThree Arrows Capital Ltd. founded by Three Arrows Capital Ltd.founded in 2012 by Su Zhu and founded in 2012 by Kyle DaviesThree Arrows Frank Chaparro of The Blockreportedthat sources said 3AC may have been liquidated for about $400 million. The source also said that 3AC “has maintained limited contact with its counterparties since it was liquidated. “Dune Analytics datashowed that 3AC’s portfolio allocation was approximately $372.47 million, with a change of approximately $139.12 million in a 24-hour period. The company’s portfolio allocations were.
3AC’s portfolio consists of tokens such as AAVE, BAT, CEL, FTT, GUSD, LIDO, and LINK, with $166 million currently invested inusd coin (USDC). 3AC’s second largest allocation is held in servers (SRM), as the hedge fund holds $46.3 million in SRM. 3AC is also invested in the Terra ecosystem of tokens and has reportedly lost significant capital from the LUNA and UST fallout. Meanwhile, 3AC co-founder Su Zhu has been vague about the situation, as there has been no official announcement from 3AC about the hedge fund’s potential insolvency.
“We are in communication with the relevant parties and are fully committed to resolving this,” said 3AC co-founder. Prior to that message, Su Zhu had not tweeted since June 7. Numerous crypto investors asked about the statement, but Su Zhu did not respond to any tweets. Kyle Davis, another 3AC co-founder, stopped tweeting on June 9.
Liquidation and possible insolvency of 3AC does not look good for the crypto community at this time. Especially with the issues surrounding Celsius, Justin Sun and Tron’s wobbly USDD stablecoin, MicroStrategy’s big loss, and the upcoming Federal Reserve meeting that may see one of the largest federal funds rate hikes in history. Amidst all this pessimism, the global economy looks extremely bleak, and inflation is wreaking havoc on the world’s citizens after countless governments have pumped trillions of dollars into the global economy over the past two years.
What do you think about reports that Three Arrows Capital is suffering from a significant liquidation and may become insolvent? Let us know what you think about this subject in the comments section below.
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