Three Arrows Capital co-founder breaks silence amid insolvency rumors
Three Arrows Capital (3AC) co-founder Su Zhu broke his silence amid speculation about liquidations of large positions by the firm and its solvency.
We are in the process of communicating with relevant parties and fully committed to working this out
— Zhu Su 🔺 (@zhusu) June 15, 2022
“We are in the process of communicating with the relevant parties and fully committed to solving this problem,” he wrote.
On June 14, stETH tokens from Lido’s liquid-staking service fell 5% from parity. PeckShield noted at the time that addresses allegedly linked to 3AC carried out two large swaps, exchanging 56 000 stETH for ETH.
Some analysts noted that the hedge fund’s activities indicate an intention to repay its debts and loans.
The trader with the handle MoonOverlord dubbed 3AC the “biggest stETH dumper.” He noted that the founders had been silent for several days, Zhu removed mentions of any cryptocurrencies from his Twitter profile and deleted his Instagram account, and the firm “dumped 30 000 stETH and reduced all positions in AAVE.”
people think Celsius is the biggest stETH dumper but its 3AC and it isnt relatively close, they are dumping on every account and seed round address they have, most looks like its going to payback debts and outstanding borrows they have pic.twitter.com/9bZnmTXQzj
— moon (@MoonOverlord) June 14, 2022
Analyst OnChainWizard stated that the address tagged by Nansen as linked to 3AC is ‘aggressively’ paying down an Aave loan. According to Zapper, the wallet’s position in the lending protocol stands at about 212 000 WETH (over $238 million), it also has a debt of over $185 million in USDT and USDC.
According to The Block analyst Larry Cermak, Nansen removed the tag “3AC.” He also added that he is ‘almost sure’ that the OnChainWizard wallet does not belong to the hedge fund.
According to EthHub co-founder Anthony Sassano, large whales ‘hunt’ for 3AC’s position in Aave. He said that Ethereum’s liquidation price is $1,034. At the time of writing ETH was trading near $1,134, according to CoinGecko.
Nexo says it has no exposure to 3AC and that it maintains conservative risk management and strict over-collateralization requirements, regardless of borrowers’ reputation.
.@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://t.co/VP37WdEn7j— Nexo (@Nexo) June 15, 2022
The Tether team also stressed that information about the issuer’s loans to 3AC is ‘categorically false’.
At the time of the update, Ethereum was trading at around $1,068. That is only about $34 above the hedge fund’s Aave liquidation price.
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