The crypto hedge fund founded by Zhu Su and Kyle Davies, Three Arrows Capital, has been troubled by insolvency rumors. Zhu Su has stated that they are “committed to working this out.” It has also made headlines for dumping millions of Staked Ethereum (stETH) during the market crash.
Three Arrows Capital, often shorthanded as 3AC, was one of the largest crypto whales backing the Terra ecosystem.
Twitter accounts such as @MoonOverlord reported 3AC’s financial difficulties, while the co-founder broke his silence with a cryptic tweet implying that the investment firm was looking for a solution.
Staked Ethereum (stETH) by the Lido Finance protocol de-pegged from the value of every dollar of ETH to a record 8 percent on Monday, according to Dune Analytics data.
According to the data, a wallet associated with 3AC withdrew 80,000 stETH from the decentralized lending protocol Aave on Tuesday and converted 38,900 stETH in ETH (approximately $45 million) in transaction 1, transaction 2 among many others .
Some observers even noted that Celsius was not by any means the largest seller of stETH over the last few days.
“People think Celsius is the biggest stETH dumper, but it’s 3AC and it isn’t relatively close,” crypto trader MoonOverlord wrote. “They are dumping on every account and seed round address they have. Most look like it’s going to pay back debts and outstanding borrows they have.”
As news of Celsius Network pausing withdrawals surfaced, another well-known trading firm, FTX’s Alameda Research, dumped nearly 50,000 stETH.
