Krypto Fund Three Arrows Capital before potential bankruptcy: report

15. Juni 2022

Krypto News Österreich

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Co -founder ZHU SU confirmed that Three Arrows Capital had problems, but did not go into rumors of insolvency
The company drew attention to itself on social media after blockchain data showed that it sold its Steth positions

The latest on-chain data has triggered speculation that the crypto-capital and risk capital company Three Arrows Capital (3AC) could be the latest prominent industry name that crumbles.

This information was further fueled by a tweet on Tuesday by 3acs co -founder ZHU SU, which seemed to confirm a stress phase, but did not drop any specific details.

After an apparent liquidation of $ 400 million by first-class lenders, 3AC may now be faced with bankruptcy. The Block reported on June 15, citing known sources. Since his liquidation, 3AC is said to have only maintained limited contact with opponents.

The company, which is a blockfi and deribit one of its investments, examines how its position with lenders and other parties can recapture, the report added.

3AC did not react immediately to a request to comment from block works.

In the traditional financial world, liquidations occur when companies try to cover debts by selling some assets with loss. In decentralized financing, a fund or protocol would sell crypto-assets to cover its debts.

3AC was founded in 2012 by the classmates Zhu SU and Kyle Davies and is a well-known crypto hedge fund that invested in several Gamefi and Defi projects. At the height of the market, es supposedly managed about 10 billion dollar. In April, the fund promised to move his headquarters from Singapore to Dubai.

Three Arrows Capital takes a haircut to repay Aave loan

Because of its significant investment in Terra, 3AC had already suffered a large setback with the collapse of the StableCoin. 3ac also drew attention to itself on social media after it started to sell his staked ether (Steth), which has dropped by almost 40 % in the past week alone.

The Steth token should be redeemable for an ETH after Ethereum has completed its transition to the Proof of Stake. Due to the current market volatility, Steth fell up to 7 % of it par with ETH, which some of its biggest owners like 3ac and the competitive crypto creditor Celsius Problems prepared.

In particular, 3AC began to withdraw from decentralized platforms in May during the crash of Terrausd. More recently the company on Tuesday Returned more than 81,000 steth from the dispensable defi protocol at that time-back then of around $ 92 million.

people think that Celsius is the biggest Steth dumper, but it is 3AC and it is not relatively close, they throw in every account and every seed round address that they have, most of them look as if it would repay their debts and outstanding loans pic.twitter.com/9bznmtxqzj

- moon (@moonoverlord) 14. June 2022

Shortly afterwards, 3ac 38,900 Steth acted for 36,718 ETH (at that time worth $ 43.9 million) on the decentralized stock exchange 0x, which corresponds to a discount of 6 %, which should have come close to a one-to-one trade. 3ac then came back the ETH to Aave, how it went on Lohe .

In May the crypto bull zhu continued Twitter Supercycle pristine thesis was "unfortunately wrong". This thesis was created in a rel = "Nofollow Noopener" Target = "_ Blank" href = "https://www.youtube.com/watch?v=A-U7JWZ8DR4"> Interview From February, when he suggested that Bitcoin could achieve $ 2.5 million, if he succeeded, a significant part of the market share of gold to conquer.

Together with stocks and other investment classes, the overall market value of cryptocurrencies fell to $ 863 billion $ Blockworks research less than 3 trillion etc. November.

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The contribution "Crypto Fund Three Arrows Capital Facing Potecial Insolvenency: Report" is not a financial advice.