- A VC firm and a crypto-focused hedge fund, Three Arrows Capital seeks to sell its remaining assets as the platform potentially smell insolvency amid the violent collapse in digital asset markets.
- As per the reports from The Wall Street Journal, 3AC has onboarded legal and financial advisers to look for solutions for its investors and lenders.
- A whistleblower belonging to the Terra Community Forum revealed that 3AC had purchased a total of 10.9 million locked LUNC worth roughly $560 million.
Three Arrows Capital, a VC firm and a crypto-focused hedge fund, as it moves towards the potential insolvency in the wake of a violent collapse in digital asset markets, is thinking about selling the remaining asset markets.
According to the reports from The Wall Street Journal, 3AC has onboarded legal and financial advisers to explore solutions for its investors and lenders. Kyle Davies, the co-founder of the firm, told the Journal that there are several options on the table including asset sales and a rescue package by another firm. Meanwhile, the firm seeks to buy more time by negotiating a tentative agreement with current creditors.
Davies says he still sees a good future for crypto. Davies says that the extent of 3AC’s participation in a $1 billion token sale issued by Luna Foundation Guard (LFG), a nonprofit organization set up to defend the Terra ecosystem’s stablecoin peg, in February of this year.
Davies further stated that during the sale in which venture firms such as Tribe Capital, Republic Capital, GSR, and DeFiance Capital, participated, 3AC purchased around $200 million in LUNC (previously LUNA) tokens.
Meanwhile, a whistleblower from the Terra Community Forum, disclosed that 3AC had bought a total of 10.9 million locked LUNC worth roughly $560 million. That position is now worth less than $1,000.
3AC faced some huge liquidations across various positions this week after Bitcoin(BTC) and Ether (ETH) dropped to their lowest level since December 2020, besides being exposed to the dramatic meltdown of the Terra ecosystem.
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Source: https://www.thecoinrepublic.com/2022/06/18/3ac-founder-kyle-davies-breaks-silence-is-the-firm-going-to-sell-all-its-remaining-assets/