{"id":243975,"date":"2022-06-17T20:00:01","date_gmt":"2022-06-17T19:00:01","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=243975"},"modified":"2022-06-17T19:12:28","modified_gmt":"2022-06-17T18:12:28","slug":"three-arrows-capital-reportedly-considering-asset-sales-bailout","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/three-arrows-capital-reportedly-considering-asset-sales-bailout\/","title":{"rendered":"Three Arrows Capital reportedly considering asset sales, bailout"},"content":{"rendered":"<p>Three Arrows Capital, which has been facing allegations of using client funds to meet margin calls, is exploring asset sales or a bailout, <em><a href=\"https:\/\/www.wsj.com\/articles\/battered-crypto-hedge-fund-three-arrows-capital-considers-asset-sales-bailout-11655469932\">The Wall Street Journal<\/a><\/em> reported June 17.<\/p>\n<p>The hedge fund has hired legal and financial advisers to figure out a solution for its investors and lenders, co-founder Kyle Davies told the WSJ. The decision comes after the firm suffered substantial losses as the crypto market started spiraling further downwards on June 10.<\/p>\n<p>Davies told the WSJ:<\/p>\n<blockquote><p>\u201cWe have always been believers in crypto and we still are.<\/p>\n<p>We are committed to working things out and finding an equitable solution for all our constituent.\u201d<\/p><\/blockquote>\n<p>In April, Three Arrows Capital had around $3 billion in assets under management. Then TerraUSD (UST) collapsed, dealing a heavy blow to the hedge fund.<\/p>\n<p>Three Arrows is trying to reach an agreement with its creditors to buy more time to figure out a plan. The fund continues to operate as it explores possible solutions, the WSJ reported.<\/p>\n<p>Three Arrows was among a group of investors who participated in the $1 billion token sale by Luna Foundation Guard, the non-profit behind the Terra ecosystem, earlier this year. The hedge fund invested around $200 million in Luna as part of the deal. The funds formed the reserve that was supposed to help UST maintain its peg to the U.S. dollar. When UST collapsed, despite the pumping in of all its reserves, Three Arrows' investment evaporated within days.<\/p>\n<p>Davies told the WSJ:<\/p>\n<blockquote><p>\u201cThe Terra-Luna situation caught us very much off guard.\u201d<\/p><\/blockquote>\n<p style=\"margin: 0px 0px 17px; padding: 0px; border: 0px; font-size: 17px; vertical-align: baseline; background: transparent; font-family: var(--font-serif); line-height: 27px;\">Although Three Arrows managed to steady itself against the Luna losses, the rapid decline in the crypto market since last week has compounded problems for the firm, Davies told the WSJ. He added:<\/p>\n<blockquote><p>\u201cWe were not the first to get hit\u2026This has been all part of the same contagion that has affected many other firms.&#8221;<\/p><\/blockquote>\n<p>Davies was referring to the troubles of Celsius, which stopped withdrawals and transfers on June 13, citing &#8220;extreme market conditions.&#8221;<\/p>\n<p>Three Arrows is in the process of gauging the total extent of its losses and valuing its liquid assets, which include investments in crypto startups, Davies told the WSJ.<\/p>\n<p>The hedge fund had large exposure to the Grayscale Bitcoin Trust, which is reeling from losses amid the market downturn. Additionally, Three Arrows also had large amounts of Ethereum (<a href=\"https:\/\/cryptoslate.com\/coins\/ethereum\/\">ETH<\/a>) staked in the Lido protocol, which also battling problems with the staked Ethereum (stETHs) selling at a discount to ETH instead of 1-to-1.<\/p>\n<p style=\"margin: 0px 0px 17px; padding: 0px; border: 0px; font-size: 17px; vertical-align: baseline; background: transparent; font-family: var(--font-serif); line-height: 27px;\">Three Arrows investors included institutions and wealthy clients, Nichol Yeo, partner at law firm Solitaire, which is advising the hedge fund, told WSJ. Yeo added that the firm is keeping the Monetary Authority of Singapore, the country's financial regulator, updated with the developments.<\/p>\n<p>Three Arrows was based in Singapore until last year and then shifted its base to the British Virgin Islands.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Three Arrows Capital, which has been facing allegations of using client funds to meet margin calls, is exploring asset sales or a bailout, The Wall Street Journal reported June 17. The hedge fund has hired legal and financial advisers to figure out a solution for its investors and lenders, co-founder Kyle Davies told the WSJ. [&hellip;]<\/p>\n","protected":false},"author":1342,"featured_media":244002,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35372],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Three Arrows Capital reportedly considering asset sales, bailout<\/title>\n<meta name=\"description\" content=\"Three Arrows is trying to buy time from creditors to figure out a plan to save itself, which could include asset sales or a possible bailout.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/three-arrows-capital-reportedly-considering-asset-sales-bailout\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Three Arrows Capital reportedly considering asset sales, bailout\" \/>\n<meta property=\"og:description\" content=\"Three Arrows is trying to buy time from creditors to figure out a plan to save itself, which could include asset sales or a possible bailout.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/three-arrows-capital-reportedly-considering-asset-sales-bailout\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2022-06-17T19:00:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-17T18:12:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/06\/3AC-bailout.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Monica Noronha\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Monica Noronha\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/three-arrows-capital-reportedly-considering-asset-sales-bailout\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/three-arrows-capital-reportedly-considering-asset-sales-bailout\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/monica-noronha\/#person\",\"name\":\"Monica Noronha\",\"url\":\"https:\/\/cryptoslate.com\/author\/monica-noronha\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/monica-noronha\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/monica-noronha\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/05\/monica-noronha-avatar-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/05\/monica-noronha-avatar-300x300.jpg\",\"caption\":\"Monica Noronha\"},\"jobTitle\":\"Journalist\",\"description\":\"Monica first started reading about crypto in 2020 and kept going deeper and deeper down the rabbit hole. 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