As reports of 3AC liquidations and insolvency circulate, Su Zhu makes a cryptic comment.
Su Zhu, a co-founder of Three Arrows Capital (3AC), a Singapore-based crypto venture capital firm, responded to rumours that the company was insolvent with a cryptic remark on Twitter. Online suspicion that 3AC may be unable to meet a margin call developed this week as the company began moving assets around this week to top up money on decentralized finance (DeFi) platforms like Aave in order to avoid potential liquidations as the price of Ether (ETH) fell this week. Unconfirmed reports claim that 3AC faced hundreds of millions of dollars in liquidations from several positions.
Platform for DeFi-banking To avert liquidations, Celsius has been aggressively fortifying up positions. 3AC is a large borrower, and Celsius funds account for a significant fraction of the total value locked in multiple platforms in the DeFi ecosystem. The collapse of one or both of these structures would have far-reaching consequences for the entire space. After being on the “wrong side of two synthetic trades – with size — in GBTC and stETH,” according to Messari Crypto’s Ryan Selkis, 3AC began to restructure its balance sheet.
Avalanche (AVAX), Terra (LUNA), Solana (SOL), Near Protocol (NEAR), Mina (MINA), DeFi, and nonfungible tokens (NFTs), leaving just a reference of Bitcoin (BTC). Others have questioned Su’s decision to delete his Instagram account, as well as why he and his co-founder Kyle Davies were both silent on Twitter for three days. Zhu’s Twitter bio was updated to delete all mentions of ETH, Avalanche (AVAX), Terra (LUNA), Solana (SOL), Near Protocol (NEAR), Mina (MINA), DeFi, and nonfungible tokens (NFTs), leaving just a reference of Bitcoin (BTC). Others have questioned Su’s decision to delete his Instagram account, as well as why he and his co-founder Kyle Davies were both silent on Twitter for three days. Other significant players in the industry, including as Chris Burniske, the former head of crypto Cathie Wood’s Ark Invest, have also speculated that 3AC may follow Terra and Celsius into bankruptcy. A meme also made a passing allusion to Alameda Research.
