On June 17, Three Arrows Capital Ltd., a cryptocurrency-focused hedge fund, recruited legal and financial experts to assist in working out a solution for its investors and lenders.
“We have always been believers in crypto and we still are,” Kyle Davies, Three Arrows’s co-founder, said in an interview. “We are committed to working things out and finding an equitable solution for all our constituent.”
According to Mr. Davies, Three Arrows is considering asset sales and a rescue by another business. The fund is seeking to negotiate an arrangement with creditors that would provide it with additional time to devise a strategy. The company is still open for business while it finds a solution.
Three Arrows invested about $200 million in Luna as part of the deal, according to Mr. Davies, now the invested amount is wiped out after the TerraUSD and Luna collapse.
He noted that the two cryptocurrencies were once among the top ten biggest digital coins until losing a total of $60 billion in market value last month.
Before the crash, some people in the crypto industry were worried about TerraUSD’s stability and how it depended on traders as its backup. They said that this system could lead to a negative cycle.
