Advertisement
AD

Main navigation

BREAKING: Three Arrows Capital Considering Bailout

Advertisement
Fri, 17/06/2022 - 13:04
BREAKING: Three Arrows Capital Considering Bailout
Cover image via U.Today

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Embattled cryptocurrency hedge fund Three Arrows Capital (3AC) is working on securing a bailout agreement, according to a Friday report published by The Wall Street Journal.

The cryptocurrency firm was hit hard by the collapse of Terra, one of the biggest blockchain projects that completely imploded in early May. According to co-founder Kyle Davis, who has finally spoken out about the hedge fund's financial woes, 3AC's $200 million position in the Luna token evaporated after the prices of the governance token and its sister stablecoin, TerraUSD, crashed to virtually zero.

While 3AC was able to weather the initial hit from the Tether contagion, it then went belly-up due to falling cryptocurrency prices. Earlier this week, the price of Bitcoin crashed to as low as $20,000, its lowest level since December 2020.

Advertisement

The hedge fund is currently in the process of valuing some of its illiquid assets, Davis says.

Davies founded 3AC together with his classmate Zhu Su all the way back in 2012. The two ended up becoming one of the world's biggest crypto holders, with 3AC managing billions of dollars.

Related
Binance CEO Clears Up Rumors About Re-Entering South Korean Market
Zhu, who famously called the bottom of the brutal 2018 crypto winter, gained prominence because of his now-infamous "supercycle" thesis. Last February, he predicted that the price of Bitcoin could shoot up to $2.5 million during a podcast appearance. In late May, Zhu finally ate humble pie and admitted that the thesis was "regrettably" wrong.

After rumors about 3AC's problems started circulating earlier this June, Zhu seemingly confirmed them with a vague tweet about working with "relevant parties." The hedge fund had been mum about its troubles until now, refusing requests for comment.

On Thursday, the Financial Times reported that 3AC had failed to meet margin calls from lenders. Popular cryptocurrency lender BlockFi confirmed that it had liquidated some of the hedge fund's positions.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles