9621 Agnes Crossing, Lake Suzanneview, New Mexico Island 84604-9295.
Three Arrows Capital (3AC) is exploring the possibility of selling assets and “financial assistance” from other companies, and is also trying to negotiate with creditors to delay payments.
Three Arrows Capital (3AC) is exploring the possibility of selling assets and “financial assistance” from other companies, and is also trying to negotiate with creditors to delay payments. The Wall Street Journal writes about it, citing hedge fund co-founder Kyle Davis.
Against the background of the collapse of the cryptocurrency market, information appeared on the network about the bankruptcy of 3AC. The company actively used high-risk DeFi tools and made a number of failed investments, including the depreciated LUNA cryptocurrency.
Davis explained to the WSJ that 3AC has hired legal and financial advisors to find a solution for its investors and creditors. According to him, the structure did not cease operations.
“We have always believed in cryptocurrencies and still do. “We aim to investigate the situation and find a fair solution for all of our customers.”
The hedge fund co-founder announced that the structure invested approximately $200 million in LUNA as part of the February token sale. After the collapse of the Terra ecosystem, this amount was almost wiped out.
“We were surprised by the Terra/LUNA situation,” he added.
Davis emphasized that 3AC was able to withstand the collapse of LUNA, but the ensuing series of negative events that led to the collapse of the cryptocurrency market made the situation worse.
According to him, Three Arrows Capital is still trying to calculate its losses and assess the value of illiquid assets, which include venture capital investments in private companies and start-ups.
Nicol Yeoh, managing partner (advising 3AC) of law firm Solitaire LLP, told the WSJ that the hedge fund’s investors are institutional and high-net-worth individuals. He added that Three Arrows Capital has kept the Monetary Authority of Singapore informed of the developments.
Earlier, information appeared in the media about the liquidation of 3AC positions by opposing parties. BitMEX, FTX and Deribit platforms, as well as cryptocurrency lender BlockFi, took this step.
Recall that on June 16, trading company 8 Blocks Capital accused Three Arrows Capital of using client funds to cover margin calls.
Read ForkLog bitcoin news in our Telegram – cryptocurrency news, courses and analysis.
Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
