Popular crypto hedge fund Three Arrows Capital went bankrupt last month after a massive sell-off in crypto assets. The fund did not make any statement regarding its situation and has remained silent until now. Co-founder of Three Arrows Capital, Zhu Su posted on Twitter, accusing the court-appointed liquidators.
The co-founder shared a screenshot of an email exchange between the fund’s legal counsel at Advcatus Law LLP and an executive in charge of liquidating Three Arrows.
The tweet came months after court filings alleged that the representatives hadn’t gotten “meaningful cooperation” from Zhu and co-founder Kyle Davies.
British Virgin Islands court-appointed Russell Crumpler of Teneo to liquidate Three Arrows Capital. The firm has said in a sworn declaration that liquidators are trying to prevent the potential “dissipation” of the fund’s assets.
How did Three Arrows Capital come to this situation? After the algorithmic stablecoin TerraUSD crashed last month, this triggered a major sell-off in digital assets. This caused a lot of financial woes for many crypto firms which included Three Arrows Capital. Besides this, many major crypto lender firms such as Celsius and Vauld paused withdrawals and transactions. Moreover, they cited the reason as “challenging market conditions”.
Also, many crypto firms and exchanges have made salary cuts and layoffs to their staff. This includes some big names such as Crypto.com and Coinbase. While the crypto community is secretly optimistic that things will return back for the better, times are still challenging for the market.
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