Bitcoin News- According to reports, the 3AC “liquidation” reached at least $400 million.
- According to Dune Analytics, 3AC’s portfolio allocation is $372.47 million.
Digital currency hedge firm Three Arrows Capital (3AC) may face insolvency, according to sources who spoke to The Block writer Frank Chaparro. According to reports, the 3AC “liquidation” reached at least $400 million, and the hedge fund’s founder, Su Zhu, tweeted Tuesday night about “communicating with relevant parties” (ET).
Hit Hard by the Terra Ecosystem Crash
Su Zhu and Kyle Davies launched the hedge fund Three Arrows Capital Ltd. in 2012, and a new report claims the company may be on the verge of bankruptcy. Since 3AC’s liquidation, the sources said, the company has had “maintained limited contact with its counter-parties since being liquidated”. According to Dune Analytics, 3AC’s portfolio allocation is $372.47 million, with a change of $139.12 million in the last 24 hours.
A total of $166 million in USDC is now held by 3AC’s holdings, which include tokens such as AAVE, BAT, CEL, FTT, GUSD, LIDO, and LINK. Serum (SRM) is the hedge fund’s second-largest commitment at $46.3 million. Additionally, 3AC is said to have lost a considerable amount of money in the aftermath of the Terra ecosystem crash. 3AC’s co-founder Su Zhu issued a cryptic comment on the situation since the hedge fund has yet to issue an official statement about the prospect of going bankrupt.
According to a co-founder of 3AC, “We are in the process of communicating with relevant parties and fully committed to working this out.” Since June 7, Su Zhu hadn’t tweeted at all. Su Zhu didn’t reply to any tweets regarding the comment, which drew much attention from cryptocurrency investors. Kyle Davies, the other 3AC co-founder, ceased tweeting on June 9.
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Source: https://thenewscrypto.com/three-arrows-capital-3ac-facing-insolvency-as-per-recent-reports/