(Reuters) – Cryptocurrency hedge fund Three Arrows Capital Ltd is exploring choices, together with the sale of property and a bailout by one other agency, the Wall Avenue Journal reported on Friday.
The crypto market has suffered heavy losses, with corporations corresponding to Coinbase, Gemini, Blockfi and Crypto.com shedding 1000’s of staff, as buyers promote dangerous property in a rising rate of interest atmosphere.
The ten-year previous hedge fund, based by Su Zhu and Kyle Davies, has employed authorized and monetary advisers to assist it work out an answer for its buyers and lenders, in response to the report, which cited the corporate’s founders.
“The Terra-Luna state of affairs caught us very a lot off guard,” Davies mentioned, in response to Wall Avenue Journal, including that Three Arrows invested about $200 million in Luna.
Cryptocurrency markets have been rocked final month by the spectacular collapse of terraUSD and its sister token luna after the stablecoin misplaced its peg to the greenback.
(Reporting by Mehnaz Yasmin in Bengaluru; Enhancing by Amy Caren Daniel)