Three Arrows Capital - a prominent cryptocurrency fund - is rumored to be facing massive liquidations as ETH prices keep crashing.
The cryptocurrency market continues to take a beating as Bitcoin is approaching $21K whereas ETH is tumbling towards $1.1K. Various accounts on Twitter have shared analytics information pointing out that one of the industry’s largest funds – Three Arrow Capital – is facing liquidations.
Rumors of Three Arrow Capital (3AC), led by the well-known crypto proponent Zhu Su being insolvent, are ramping up within the community.
According to on-chain data, an address that was tagged to belong to 3AC by analytics provider Nansen has been aggressively paying back AAVE debt against a position worth some $264 million (223K ETH) to avoid liquidation.
On-chain Wizard – a well-known analyst – concluded that if ETH goes to $1042, the position would be liquidated:
Source: Twitter
At the time of this writing, ETH is trading at its lowest point since January 2021, charting a 17-month low at slightly above $1,100.
This means that the above position is some 7% away from being liquidated if no collateral is added or if the loan is not repaid.
Zhu Su, co-founder at 3AC, took it to Twitter a few hours ago to share some light, albeit limited and without revealing any precise information:
We are in the process of communicating with relevant parties and fully commited to working this out.
Georgi Georgiev is CryptoPotato's editor-in-chief and seasoned writer with over four years of experience writing about blockchain and cryptocurrencies. Georgi's passion for Bitcoin and cryptocurrencies bloomed in late 2016 and he hasn't looked back since. Crypto’s technological and economic implications are what interest him most, and he has one eye turned to the market whenever he’s not sleeping. Contact George: LinkedIn
