Su Zhu, co-founder of cryptocurrency hedge fund Three Arrows Capital (3AC), has broken his silence amid speculation about the liquidation of large positions in the structure and solvency.

We are in the process of communicating with interested parties and are fully committed to resolving this.

— Zhu Su 🔺 (@zhusu) 15 June 2022

“We are in the process of communicating with interested parties and are fully committed to resolving this issue,” he wrote.

On June 14, stETH tokens from liquid staking service Lido fell by 5% compared to the original. PeckShield noted that addresses believed to be linked to 3AC made two major exchanges exchanging 56,000 stETH for ETH.

Some experts emphasized that the hedge fund’s operations indicate its intent to pay off the debts and loans it has.

Trader MoonOverlord has called 3AC the “biggest dumper” of stETH. He noted that the build’s founders remained silent for several days, removing any mention of cryptocurrencies from Zhu’s profile description on Twitter and deleting his Instagram account, and the company itself “abandoned 30,000 stETH and reduced all positions in AAVE.”

people think Celsius is the biggest STETH dumper but its 3AC and not relatively close they are dumping to every account and seed round address they have, most of them seem to be paying back their debts and outstanding debts pic.twitter.com/9bZnmTXQzj

— moon (@MoonOverlord) 14 June 2022

OnChainWizard aka Analyst declarationThat an address marked as 3AC-related by Nansen has “aggressively” repaid Aave’s loan. According to Zapper, the wallet’s position in the landing protocol is approximately 212,000 WETH (over $238 million), and it also owes over $185 million in USDT and USDC.

According to Anthony Sassano, co-founder of the EthHub research platform, large whales are “hunted” for position 3AC in Aave. He explained that the liquidation price of Ethereum is $1,034. According to CoinGecko, at the time of writing, ETH is trading around $1,134.

3AC also has the second highest loss on the Bitfinex platform in May. The company lost more than $31 million.

Citing knowledgeable sources, The Block said 3AC is trying to pay creditors and other counterparties who forcibly closed their positions. The interlocutors of the publication said that the total amount of liquidation was $ 400 million.

A hedge fund can use accumulated NFTs to pay off debt positions. Coin Metrics analyst Kyle Waters suggested that the company is gearing up for a major OTC deal. Starry Night Capital, affiliated with 3AC, has withdrawn all tokens from the SuperRare market.

2/ Some backstory: 3AC launched Starry Night Capital last summer with the pseudonymous NFT collector Vincent Van Dough with the goal of raising $100 million and “bringing together the best NFT collection in the world”https://t.co/sgXxSiQSJl

— Kyle Waters (@kylewaters_) 15 June 2022

Recall that in February 2022, Three Arrows Capital led the LUNA token sale. LFG $1 billion In May, the Terra ecosystem collapsed and the local cryptocurrency nearly lost value.