Three Arrows Capital liquidates $ 400 million in crypto

Three Arrows Capital fears for its future. Now that the crypto-investment firm is millions of dollars lighter, some fear that the firm will collapse completely.

It all happens again in the crypto room! According to a report by TheBlock, the respected investment firm Three Arrows Capital (3ac) is worried about its future. In the last few hours, $ 400 million in crypto has reportedly been liquidated on various protocols.

Without going into details, founder and CEO Zhu Su acknowledges payment problems. The team is in the process of talking to the relevant stakeholders and is confident that the issues will be resolved.

After being liquidated by high-profile rental protocols, 3ac is now reportedly trying to pay lenders. As investors in DeriBit and Blockfi, both companies should not be too enthusiastic about the bad news. While BlockFi provides financial services, DeriBit is an options exchange.

TheBlock cites three insiders who have refused to disclose their names for fear of retaliation. Allegedly, Three Arrows Capital has had limited contact with the liquidation protocols since then. At least Zhu Su claims the opposite.

Aave’s connection to Three Arrows Capital

3ac has invested in several well-known crypto companies as an investor. Users can see all projects on their website: From the classic ecosystem tokens Ethereum, Avalanche, Kusama and Near to the DeFi area with Aave, Ardana, Balancer and Lido, everything is included.

It is obvious that this is an uncertain situation. Aave is one of the cryptocurrencies used by Three Arrows Capital.

For a security of $ 212,000 Ethereum worth $ 235 million on Aave is said to be a total debt of $ 183 million. According to WuBlockchain, the position would be liquidated to $ 1,014. 3ac is said to have repaid debt in a few hours.

The address to which it must specifically be:

Source: zapper.fi

The current debt of 180 million US dollars is clearly visible there. In the following picture you can also see the deposited security:

Aave portfolio of the crypto investment firm Three Arrows Capital
Source: Zapper.fi

At its best, it was not even 5% of the crypto investment firm’s assets when the team managed $ 10 billion.

Crypto continues to decline – What opportunities are left for the investment company?

Many options are no longer left and the situation does not get better with the falling price of Ethereum. One option would be, as already known from Celsius, to reduce the loan by investing USDC or USDT. Second option: Deposit more Ethereum as security. The third and final option, which can not be strongly influenced by 3ac, would be to push the ETH price.

What does Three Arrows Capital choose? A look at Etherscan reveals that the company still has all $ 236 million in lent Ethereum.

The latest significant transaction 8 hours ago shows that 3ac repaid 3.5 million USDC to Aave – a drop in the bucket. Only 1% of the amount due.

ONE users attributes Luna to the problems in the investment company.

“Both 3ac and Celsius Network played with stETH – because of Luna. 3ac held totals in the 9-digit area of ​​Luna. Luna is responsible for 3ac’s potential bankruptcy. “

In addition, the user expressed concern about what other projects could be associated with the Three Arrows Capital’s shipwreck. He also accuses Celsius of playing too much with the tempting offer from stETH.

StETH represents the artificial “stacked ETH” of the DeFi platform Lido. This should be able to be exchanged for exactly one Ethereum after the merger, but that does not mean that it corresponds exactly to the value of an Ethereum. Lido confirmed this 5 days ago with a statement on Twitter:

stETH is associated with the collapse of the Terra ecosystem. The collapse had shaken the crypto world in recent weeks.

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