Su Zhu's mystical statement when rumors swirl about 3AC liquidation and bankruptcy

Su Zhu’s mystical statement when rumors swirl about 3AC liquidation and bankruptcy – Mail Bonus

Su Zhu, co-founder of Singapore-based cryptocurrency firm Three Arrows Capital (3AC), has issued a cryptic statement on Twitter in response to rumors that the company is fighting bankruptcy.

An online chat that 3AC could not meet the margin call began after 3AC began transferring assets this week to replenish funds on DeFi systems such as AAVE to avoid a possible bankruptcy within Ether (ETH) this week. There are unconfirmed reports that 3AC has faced hundreds of millions of bankruptcies from many places.

Celsius’s DeFi banking platform has also been fiercely strengthening positions to avoid bankruptcy as well. Celsius funds account for a significant part of the total value that is locked in various systems in the DeFi ecosystem, but 3AC is a large borrower. The collapse of either or both would have a significant impact on the entire space.

In a short and beautiful Twitter entry from earlier today, Zhu broke his silence after about three days of inactivity on social media and hinted that the company was working through its issues:

“We are in contact with the relevant parties and are fully committed to working on this.”

Ryan Selkis at Messari Crypto identified speculation that 3AC has begun restoring its balance sheet after being on the “wrong side of two pseudo-sized trades in GBTC and stETH.”

Wu Blockchain too reported that the company lost about $ 31.37 million through trading on Bitfinex in May.

The rumors grew after Zhu distance all mentions investments in ETH, AVAX, LUNA, SOL, NEAR, MINA, DeFi and NFTs from their Twitter biography, with only mention of Bitcoin (BTC). Others have raised questions about Su deleting her Instagram and asking why both he and co-founder Kyle Davies have been inactive on Twitter for three days.

Related is the previous exposure of 3AC for the Terra ecosystem through the LUNA symbol (now LUNAC) which suffered a multi-billion market collapse at the end of May. The platform exchanged approximately $ 500 million worth of Bitcoin (BTC) with the Luna Foundation Guard for the equivalent fiat amount in LUNA just weeks before Terra collapsed.

Connected: Binance.US is facing a class action lawsuit over LUNA and UST sales

Other prominent figures in the space, such as Cathie Wood’s former head of cryptography, Chris Burniske, also pointed to rumors that 3AC was the next company to crumble after Terra and Celsius. Alameda Research was also loosely referenced via meme.