Three Arrows Capital co-founder Su Zhu posted to Twitter on Wednesday to say that the firm is “committed to working this out” as rumors of insolvency have circulated across the crypto community.
Suggestions of Three Arrows Capital (3AC)’s possible issues first surfaced on crypto Twitter early on Tuesday and spread throughout the course of the day. The crypto-focused hedge fund based in Singapore appeared to be dumping staked Ethereum (stETH) as quickly as possible. stETH is Lido-staked Ethereum, a project that is facing liquidity issues and deviating from its peg as of late.
3AC, founded by Su Zhu and Kyle Davies, is one of the world’s most successful crypto hedge funds. After launching in 2012, it grew into a multi-billion dollar establishment that became known for its prescient trading calls. Unconfirmed reports claim that the firm may have missed a margin call and experienced a liquidation event due to the recent meltdown in the crypto market.
3AC co-founder Su Zhu posted a cryptic tweet early Wednesday, hinting that the hedge fund was looking for solutions to an issue it was facing. “We are in the process of communicating with relevant parties and fully committed to working this out,” Zhu wrote.