Su Zhu, the co-founder of Three Arrows Capital- a Singapore-based crypto venture capital firm, recently put out quite an interesting statement on Twitter as a response to most of the swirling rumors that the company had been battling insolvency. There was much online chatter about the company not being able to meet any form of a margin call which started after the company began moving their assets such as Aave in order to avoid potential liquidations- with the tanking price of Ether to contend for this week. There have also been unconfirmed reports that the company faces liquidations which would total around hundreds of millions from quite a few positions.
Su Zhu Believes 3AC has it In Them to Battle Out Insolvency
Along with Su Zhu’s 3AC, Celsius– another Defi-Banking platform, has been trying to shore up their positions in order to avoid any form of liquidation. The funds of Celsius account for quite a large proportion of the total value locked in several different platforms in the ecosystem- while 3AC is simply a major borrower of assets. The collapse of either of the two enterprises could have a significant impact on the entire crypto industry.
In a short tweet on the 15th of June, Su Zhu broke his earlier silence after moving through three days of complete inaction on social media and also suggested that the company was still working through its multiple issues. He mentioned that the company was still in the process of communicating with all the relevant parties and was absolutely committed to seeing this out.
Ryan Selkis of Messari Crypto went on to highlight the speculation that Su Zhu’s enterprise had started to reposition its balance sheet after it was firmly placed on the wrong side of a couple of synthetic trades- in GBTC and sETH. Wu blockchain also went on to report that the firm had lost close to $31.37 million through trading on Bitfinex during May.