A vague tweet from the co-founder of a Singapore-based cryptocurrency hedge fund has spurred concerns about its financial health, «Bloomberg» reported.

Zhu Su, co-founder of cryptocurrency-focused hedge fund Three Arrows Capital, sent out a vague statement on Twitter, spurring speculation about the fund’s potential losses in the wake of a global selloff in bitcoin, Ethereum and other digital tokens, according to a «Bloomberg» report.

«We are in the process of communicating with relevant parties and fully committed to working this out,» Zhu Su said in the tweet, published from his verified account, on Wednesday. The account typically has its own pro-cryptocurrency tweets, musings on «mystics,» or retweets pro-cryptocurrency posts, often on the sector’s minutiae.

 

 

Potential Insolvency?

Three Arrows Capital did not immediately respond to an emailed request for comment from finews.asia.

A crypto-focused website called «The Block» reported, citing «well-placed sources,» that Three Arrows Capital faced insolvency after being liquidated by lenders. «The Block» report said three people had stated the firm was keeping limited contact with counterparties.

The «Bloomberg» report noted that information on the size of the Three Arrows Capital fund is «sparse,» and cited data from blockchain analytics firm Nansen estimating the assets under management at US$10 billion in early March – before the selloff in crypto assets began to snowball. In early June, Laevitas, a data analytics platform for crypto derivatives, said it closed a US$2.5 million seed round led by Three Arrows Capital and DeFiance Capital.

Market Selloff

The broader crypto industry has been hard-hit by the selloff in digital assets, with layoffs widespread. Crypto.com and BlockFi have all cut hundreds of jobs while rival exchange Coinbase Global announced it would slash 1,100 jobs – or 18 percent of its workforce. 

Since peaking in November 2021 at around US$2.9 trillion, the crypto market fallen nearly two-thirds to around US$969 billion, according to data from CoinMarketCap. In addition to a challenging macro environment, digital currencies have been hit by various market troubles including the collapse of stablecoin TerraUSD and the recent halt of withdrawals at crypto lender Celsius Network.