Three Arrows Capital (3AC), a large hedge fund focusing on cryptocurrencies, is facing the sale of assets, a knowledgeable source told CNBC, another sign of the crisis the cryptocurrency industry is going through.
Teneo has been hired in recent days to deal with the sale process, the source said, speaking on condition of anonymity.
Sky News first broke the news of the sale of 3AC assets. It is noted that 3AC did not respond to a request from CNBC for comment.
Teneo is in the very early stages of the sale process, the source said. The restructuring company is taking steps to utilize 3AC’s assets, then set up a website in the next day or two with instructions on how creditors can be contacted to file any claims, the source added.
3AC is one of the most important hedge funds in the field of cryptocurrencies and is mainly known for its high leverage bets. Zhu has extremely optimistic views on bitcoin.
However, the fall in cryptocurrencies, which has erased billions of dollars from the market in recent weeks, has hit 3AC and caused a liquidity crisis in the company.
On Monday, 3AC defaulted on a $ 350 million loan from Voyager Digital, consisting of $ 350 million worth of stable dollar USDCs tied to the US dollar and 15,250 bitcoins, valued at about $ 304.5 million at current prices.
3AC also had exposure to the recently stablecoin terraUSD algorithm and the recently collapsed luna.
The Financial Times reported earlier this month that US-based cryptocurrency lenders BlockFi and Genesis had liquidated some of the 3AC positions, citing knowledgeable individuals.
3AC’s history has raised fears that there could be a chain reaction in market segments that may be exposed to the company.
Other cryptocurrency companies have also faced sales problems. It is recalled that the lending company Celsius and the cryptocurrency exchange CoinFlex were forced to suspend withdrawals for their customers, citing both “extreme market conditions”.
CoinFlex, meanwhile, had another problem with a customer who failed to repay a $ 47 million debt, creating a liquidity problem for the company.
Source: Capital
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