Su Zhu’s cryptic statement as rumors swirl of 3AC liquidations and insolvency

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Su Zhu, co-founder of Singapore-based crypto venture capital firm Three Arrows Capital (3AC), has made a cryptic statement on Twitter in response to rumors that the company is facing bankruptcy.

Unable to meet 3AC’s margin call after 3AC moved assets around this week to top up funds on DeFi platforms like AAVE to avoid possible liquidation amid tanking price of Ether (ETH) this week Online conversations started about being. There are unconfirmed reports that 3AC faced liquidation from multiple positions totaling crores.

DeFi-banking platform Celsius is also rapidly increasing its positions to avoid liquidation. Celsius Fund accounts for a significant proportion of the total value locked across various platforms in the DeFi ecosystem, while 3AC is a major borrower. The collapse of either or both would have a significant impact on the entire space.

in a short and sweet twitter Post Earlier today, Zhu broke his silence on social media after nearly three days of inactivity and suggested the company was working on its issues:

“We are in the process of communicating with relevant parties and are fully committed to fulfilling this.”

Ryan Selkis of Messari Crypto Thrown light on There has been speculation that 3AC began revamping its balance sheet after “having the wrong side of two synthetic trades – with size – in GBTC and stETH”.

Woo Blockchain too informed of The firm lost approximately $31.37 million through trading on Bitfinex during May.

Rumors spread after Zhu removed All mentions of investing in ETH, AVAX, LUNA, SOL, NEAR, MINA, DeFi and NFT from his Twitter bio, keeping only the mention of Bitcoin (BTC). Others have raised questions about Su’s deleting Instagram, and asked why both she and co-founder Kyle Davis were inactive on Twitter for three days.

A related issue is 3AC’s past exposure to the Terra ecosystem via the LUNA token (now LUNAC), which experienced a multi-billion market crash in late May. The platform exchanged approximately $500 million worth of bitcoin (BTC) with the Luna Foundation Guard for the same fiat amount in LUNA a few weeks before Terra exploded.

related: Binance.US faces class-action lawsuit over LUNA and UST sales

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Other prominent figures in the space such as Arch Invest’s former head of crypto Kathy Wood, Chris Burniske, also pointed to rumors that 3AC is the next firm to crumble after Terra and Celsius. Alameda Research was also loosely referenced through a meme.