Sources: crypto hedge fund Three Arrows Capital faces an uncertain future after a $400M liquidation; CEO Zhu tweeted we are “committed to working this out”

The future of crypto hedge fund Three Arrows Capital hangs in the balance as the firm faces potential insolvency after being liquidated by its lenders. Source: @zhusu .

The Block 2022-06-15 Frank Chaparro

Discussion

@zhusu @zhusu on x
We are in the process of communicating with relevant parties and fully committed to working this out
@hodlkryptonite @hodlkryptonite on x
Why Celsius and 3AC going under should cause you to worry 1/x
@onchainwizard @onchainwizard on x
This wallet (tagged as 3AC on Nansen) has been aggressively paying back AAVE debt against its 223k ETH / $264mm position to avoid liquidation. With $198mm in borrowings against it, @ a 85% liq threshold, a -11% move in ETH to $1,042 liqudates it https://etherscan.io/... https://t…
@paoloardoino Paolo Ardoino on x
1/ Tether reduced almost 50% its CP holdings since 31st March 2022. By end of June only 8.4B CP left. CP exposure going to be reduced to 0. No exposure to Celsius on our reserves. Liquidated without losses. No exposure to 3AC. https://twitter.com/...
@lawmaster @lawmaster on x
Rumors about 3AC margin called, Celsius illiquid and done, Terra blew up, a lot of funds lost like 90% of their capital, Coinbase firing 20% of all employees. How much worse can things really get anon? This is oof city
@sobylife @sobylife on x
People gave 3AC flack for “using twitter for exit liquidity” They clearly put their money where their mouth is, let this be a lesson for all of us.
@twobitidiot Ryan Selkis on x
1/ Rumors + speculation: 3AC was unfortunately on the wrong side of two synthetic trades - with size - in GBTC and stETH. In other words, a temporary condition vs fundamentally bad bet which may be why they have a shot at fighting through an insolvency. https://twitter.com/...
@danny8bc Danny on x
We trade in one of 3AC's trading accounts. This morning they took about ~1m out of our accounts. I hope you pay us back asap. https://twitter.com/...
@hodlkryptonite @hodlkryptonite on x
3/x - First of all, 3AC collapse is monumental. This is because they borrow from EVERY SINGLE MAJOR lender. Think BlockFi, Genesis, Nexo, Celsius. Expect every lender to take on hits from 3AC
@buccocapital @buccocapital on x
I feel like I wake up to absolute chaos in the crypto market every single morning Honest question: Does this matter at all to the economy? Like, is there a spillover risk? Or are we just draining unproductive excess bullshit Genuinely curious. Please let me know. https://twitter.…
@nexo @nexo on x
.@Nexo has $0 exposure to Three Arrows Capital. Nexo has always differentiated itself from others as being a very conservative lender with stringent risk management and strict over-collateralization requirements, regardless of borrowers' reputation. https://www.theblock.co/...
@lawmaster @lawmaster on x
Don't really understand why 3AC would send $90M of FTT on KuCoin instead of FTX. Some weird things going on https://etherscan.io/... https://twitter.com/...
@defiyst @defiyst on x
With Celsius out the clear in the short-term with their on-chain positions, all eyes are now on 3AC. 3AC supposedly owns this wallet, and 8k ETH has just been liquidated - 0x716034c25d9fb4b38c837afe417b7f2b9af3e 9ae https://twitter.com/...
@rleshner @rleshner on x
I became a DeFi founder in order to create a more transparent, autonomous, and safer financial system. Watching the implosion of UST, Celsius, 3AC, and (hopefully not) more, all of which are opaque and trust-based, reaffirms the need for *Decentralized Finance* more than ever.
@fintechfrank Frank Chaparro on x
In any case, it sounds ugly: missed margin calls and liquidation Hope those guys are doing okay emotionally and come out the other side if this
@lawmaster @lawmaster on x
We are slowly but surely approaching the territory where exchanges might have to deploy the famous “We're performing an unscheduled maintenance” card all at the same time 🫡
@altcryptogems @altcryptogems on x
Celsius being illiquid, $LUNA blowing up, loads of funds losing 90%+ of their value, Coinbase firing 15% and Crypto firing 10% of their employees, rumors about 3AC being margin called. It's a slaughter out there. How much worse can it get? Hopefully the bottom is near.
@alexrkonrad Alex Konrad on x
when my editor asks if my draft is ready at deadline https://twitter.com/...
@autismcapital @autismcapital on x
Rumors floating that 3AC couldn't meet a $5M margin call on a $1B loan. If true, this is devastating.
@nexo @nexo on x
Оver 2 years ago, we declined 3AC's request for unsecured credit. We learned that they acquired it elsewhere. It is now obvious that Nexo's approach was correct. This is why our assets exceed our liabilities: https://real-time-attest.trustexplorer. io/ nexo
@krugermacro Alex Krüger on x
Last night's BTC & ETH selloff was 3AC getting liquidated. Tonight's selloff is a combo of leveraged shorters + panic selling. Different beasts.
@defiyst @defiyst on x
With ETH nuking this 3AC wallet is ABOUT to be liquidated. Liq price ~ $1,018 ETH. All eyes on ChainLink oracle now https://zapper.fi/...
@jasonyanowitz @jasonyanowitz on x
Thoughts on 3AC 1) Markets will humble anyone who uses leverage 2) Synthetic assets are riskier than they appear 3) Don't root for others to fail 4) Su and Kyle are legends - hoping they pull through
@tradermayne Mayne on x
Ppl are slowly learning that the reason they don't have any money left isn't because of 3ac, Sam or any other VCs or funds. It's their own shitty decision making.
@coinbureau @coinbureau on x
Now that the 3AC rumours appear to be true, the question shifts to how many counterparties they were exposed to? And will these counterparties have to adjust their books given their own exposure? Hoping for an orderly resolution, but markets sometimes aren't orderly...
@cz_binance @cz_binance on x
It's a bloodbath out there. Hunker down. Make sure you can last.
@robinwigg Robin Wigglesworth on x
Crypto hedge fund Three Arrows Capital — which apparently managed $10bn at its peak — has been liquidated, reports @fintechfrank https://www.theblock.co/...
@trackinflation @trackinflation on x
One of the largest crypto hedge funds in the world with $18bn in capital is about to collapse. If you think things are bad just wait. https://twitter.com/...
@0xtuba @0xtuba on x
3AC is one of the largest funds in crypto. At peak, it had over 5 billion dollars of assets and owned hundreds of thousands of ETH. As of today, it appears insolvent, and it's taking the whole crypto market with it. The 3AC Thread: 👇🧵
@midasthefool @midasthefool on x
Current #3AC situation summarized: 3AC has $245M of $ETH deposited on lending platform @AaveAave From this, they have borrowed $189M in $USDC and $USDT This puts their Loan-to-Value ratio at ~77% They must keep this below 85%
@cobie @cobie on x
gm (or not)
@swissborg @swissborg on x
SwissBorg is proud to confirm that we have 0 exposure to 3AC capital and any unsecured loans. Our #yield is built on the safest #DeFi protocols (unlike most CeFi offers), making us immune to the collapse of the counterparties of #CeFi yield providers
@thinkingusd Flood on x
All of the people mocking 3AC... you guys are broke and will never achieve 1/10000th of what they've accomplished. Fuck off
@ryan_browne_ Ryan Browne on x
‘Zhu — who up until a few weeks ago was a vocal crypto bull — recently took to Twitter to admit that his ‘supercycle’ bull case on the crypto market was “regrettably wrong.”’ https://www.theblock.co/...
@lthomasnews Luke Thomas on x
This is the founder of Three Arrows Capital, a (once?) multi-billion crypto hedge fund now facing speculation it has gone insolvent: https://cryptobriefing.com/... https://twitter.com/...
@ledgerstatus @ledgerstatus on x
Rooting for 3AC to work through it. Hate seeing this. https://twitter.com/...
@alexhern @alexhern on x
every single Tether statement fits the format of “my unregulated shadow bank's statement that [subject of statement] is raising a lot of questions answered by the statement” https://tether.to/...
@cryptoharry_ @cryptoharry_ on x
Uhh, are the rumours true? 3AC insolvent? Whatever happens, I think it's worth commending @zhusu and the team for their great work in the industry. https://twitter.com/...
@midasthefool @midasthefool on x
At current collateral/loan values, 85% or liquidation of their $245M of ETH occurs when $ETH hits $1034 Their options: 1) Deposit more USDC/USDT to bring down loan 2) Add more $ETH 3) Pump the price of $ETH I'm sure the sharks are out there trying to dump ETH.
@mansourtarek_ Tarek Mansour on x
Is this our Lehman Brothers moment? https://twitter.com/...
@econoar @econoar on x
Turns out 3AC actually abandoned Ethereum because they have no money to pay for gas fees.
@nope_its_lily Lily on x
Crypto winter started with a Ponzi collapsing (Wonderland), culminating with an EM currency crisis (LUNA), the collapse of a shadow bank (Celsius), and the struggle/???/potential default of a prominent hedge fund (3AC). 2008 says hi
@autismcapital @autismcapital on x
212,000 ETH are inches away from being liquidated. That's $225M. https://twitter.com/...
@ryansadams Ryan Sξan Adams on x
Update: ✅ Luna ✅ Celsius ✅ 3AC 🔲 ____________ Who's next? https://twitter.com/...

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Sources: crypto hedge fund Three Arrows Capital faces an uncertain future after a $400M liquidation; CEO Zhu tweeted we are “committed to working this out”

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