BRIEF // Three Arrows Capital, a Singapore-based hedge fund, is reportedly in dire straits after being liquidated by its lenders. The structure would now risk insolvency.
While chaos currently reigns in the cryptocurrency market, players in the sector are becoming more and more feverish. This is particularly the case of Coinbase, which has decided to lay off 18% of its workforce, but also of Three Arrows Capital, a hedge fund based in Singapore. The latter, which manages nearly 10 billion dollars, would find itself in a delicate situation after being liquidated by its lenders. According The Blockwhich cites sources familiar with the matter, the amount of the liquidation amounts to at least 400 million dollars.
Already reeling from the collapse of Ether and the Terra ecosystem, Three Arrows Capital would now risk insolvency. Faced with rumors of impending bankruptcy, the hedge fund’s boss, Su Zhu, tried to appease the spirits on Twitter. “We are in discussions with the parties concerned and are fully committed to reaching a resolution”, he tweeted. In great danger, Three Arrows Capital could be the first victim of a long series of the wind of panic which is panicking the crypto planet.