Friday, December 9, 2022

3AC Confirms Heavy Losses After LUNA’s Crash

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Three arrows capital or 3AC confirms heavy losses after the LUNA collapse and now the company’s co-founder is looking into the possibility of selling assets and rescuing the company so let’s read more today in our latest cryptocurrency news.

The crypto fund Three Arrows Capital – 3AC confirms it suffered heavy losses in the recent market downturn and said it hired legal advisors to figure a way out. Co-founder Kyle Davies said the fund had over $3 billion worth of crypto under management:

“We are committed to working things out and finding an equitable solution for all our constituents.”

3AC is exploring more options including asset sales and rescue by other companies with hopes to reach a settlement with the creditors. 3AC owes $6 million to BitMEX according to a new report from The Block today. Davies said that the company invested over $200 million in LUNA tokens as a part of the $1 billion raised by the foundation back in February with the amount being worthless since the Terra ecosystem crashed in May. He also added that the entire situation caught the team very much off guard.

three arrows capital

LUNA lost all of its value in a course of a week and while the stablecoin TerraUSD dropped to a few pennies after losing the peg with the US dollar. 3AC was also known as one the biggest holders of Grayscale BTC Trust which is an institutional BTC product as well as staked ETher tokens both of which saw steep declines. Davies added that 3AC was working to qualify its losses and to value the illiquid assets that include most venture capital investmetns in the crypto startups. Nichol Yeo a partner of the law firm Solitaire LLP said that it was keeping Singapore’s financial regulator apprised of the recent developments regarding Three Arrows Capital.

As recently reported, The Dubai-based fund Three Arrows Capital is facing possible insolvency after incurring about $400 million in liqudations. Three Arrows faces insolvency after it liquidated a huge chunk and it is in the process of repaying lenders and other counterparties. The company’s founders Su Zhu and Kyle Davies were two of the most vocal participants in the crypto space in the past few years and made bets on NFTs, DEFI applications, layer-1 tokens, and crypto companies.

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