An ailing crypto hedge fund is reportedly contemplating its options in dealing with massive losses, including being bailed out by other firms and selling remaining assets.
In a new report by the Wall Street Journal (WSJ), Three Arrows Capital founders Kyle Davies and Su Zhu say the crypto hedge fund was hit with heavy losses amid the crypto downturn.
Davies and Zhu say the firm has hired legal professionals and financial advisors to help them meet their obligations to lenders and investors.
Says Davies,
“We have always been believers in crypto and we still are. We are committed to working things out and finding an equitable solution for all our constituents.”
Davies says Three Arrows Capital is mulling its options, including a rescue from outside firms.
According to the crypto hedge fund executive, the firm was caught “very much off guard” by the Terra (LUNA) implosion, which wiped out over $40 billion in crypto market capitalization. Davies says that while the company was able to endure the unprecedented LUNA sell-off, the sustained downtrend in the crypto markets over the last few weeks added fuel to the fire.
“We were not the first to get hit…This has been all part of the same contagion that has affected many other firms.”
According to the WSJ, the crypto hedge fund is still up and running as it tries to find a solution.
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