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Three Arrows Co-Founder Gives Pace To Insolvency Rumors: 'Fully Committed To Working This Out'

Published 15/06/2022, 04:54
© Reuters. Three Arrows Co-Founder Gives Pace To Insolvency Rumors: 'Fully Committed To Working This Out'
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Zhu Su, the co-founder of the cryptocurrency investment firm Three Arrows Capital has spoken out on social media as rumors swirl around the hedge fund’s impending insolvency.

What Happened: The 3AC co-founder tweeted, “We are in the process of communicating with relevant parties and fully committed to working this out.”

Zhu’s comments came even as cryptocurrency Twitter (NYSE:TWTR) was abuzz with rumors that the Singapore-based hedge fund was going bust.

See Also: How To Get Free NFTs

Why It Matters: 3AC sold $40 million of Lido’s staked Ether (stETH) early Tuesday, according to a report from cryptocurrency publication The Defiant, which cited blockchain data.

While stETH maintained a peg with ETH, that changed dramatically last week as the beleaguered Celsius (CEL) began to sell its holdings to facilitate withdrawals.

Three Arrows also suffered heavy losses due to its exposure to Terra Classic (LUNC), reported The Block.

In May, LUNC lost almost all of its value after the project-backed algorithmic stablecoin TerraClassic USD (USTC) lost its peg with the dollar.

Zhu is known to tweet about Ethereum (CRYPTO: ETH) alternatives such as Avalanche (AVX) and Solana (SOL). Recently, he labeled stETH as the “most sound source of native protocol yield on Ethereum.”

Read Next: Not Bitcoin Or Gold: 'Rich Dad Poor Dad' Author Says This Is The Best Investment To Beat Inflation Right Now

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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