Conclusion of Three Arrows Capital failed
Three Arrows Capital invested approximately $200 million in LUNA before it was near zero.
In early June, Galaxy Digital CEO Mike Novogratz said that two-thirds of funds focused on cryptocurrencies will likely fail.
Recently, one crypto-focused hedge fund, Three Arrows Capital, has reportedly faced bankruptcy risk. The fund has hired lawyers and financial advisors. To help find a solution for the investors and creditors of the company.
Kyle Davies, Co-Founder of Three Arrows Capital, says we’ve always believed in crypto and still believe We pledge to strive to find the most fair solution and solution for all parties.
Three Arrows Capital has been around for almost 10 years, started by college friends Su Zhu and Kyle Davies, with around $3 billion in assets under management as of April. This was shortly before the collapse of TerraUSD.
The fund is currently looking at options to sell assets and seek help from other companies. The fund hopes to reach an agreement with creditors to give them time to come up with a plan to resolve the issue.
One of the reasons for the hefty losses for Three Arrows Capital came from being one of the major investors who invested in the Luna Foundation Guard and contributed to its efforts to keep TerraUSD worth $1 per token.
Additionally, Three Arrows Capital invested approximately $200 million in LUNA before it was near zero.
“Terra and LUNA’s situation hit us hard. And we weren’t the first to be affected. This time it’s part of the ongoing impact, and it’s affecting many companies,” Davies said, adding that if it was a loss from LUNA alone, Funds can still survive. But the aftermath of a series of events that pushed the prices of Bitcoin and other cryptos down greatly increased the problem.
Source : Wall Street Journal
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