Su Zhu, a co-founder of Three Arrows Capital, said in a vague tweet that the firm is “committed to working this out” as reports of a probable wipeout event spread across the crypto world.
Three Arrows Capital, founded by Su Zhu and Kyle Davies, is one of the most well-known crypto hedge funds.
Su Zhu, co-founder of Three Arrows Capital, has broken his silence after speculations that the firm may be experiencing liquidity concerns rippled throughout the crypto world.
Early Wednesday, the popular trader sent a cryptic tweet, implying that Three Arrows Capital was looking for a solution to a problem. “We are in the process of communicating with relevant parties and are fully committed to working this out,” Zhu stated, eliciting a flurry of supportive replies from the crypto community, including from Cobie, Byzantine General, satsdart, and others.
Rumors about the company’s potential problems initially surfaced on Crypto Twitter early Tuesday and quickly circulated throughout the day. According to unconfirmed sources, the firm may have missed a margin call and undergone a liquidation event as a result of the recent crypto market crisis.
The rumors surfaced just hours after Celsius halted customer withdrawals due to what is widely assumed to be a liquidity shortage.
Three Arrows Capital is one of the most successful crypto hedge funds in the world. It evolved into a multibillion-dollar company famed for its foresight trading calls after debuting in 2012, elevating Zhu and his long-term partner, Kyle Davies, to crypto celebrity status.