Crypto hedge fund Three Arrows Capital (3AC) has hired legal and financial advisers to help work out the best way to manage losses from a broader market selloff in digital assets.
3AC co-founder Carl Davies told The Wall Street Journal that the firm was “committed to working things out and finding an equitable solution for all our constituent.”
The Terra ecosystem resulted in a significant hit for 3AC as its investment in Terra’s native luna token sank to almost zero.
Davies told the Journal that the firm had put $200 million into Luna. Davies said that the Terra-Luna situation caught the firm “very much off guard.”
The moves come amid a broader crypto market rout that has seen firms struggle to make good on their promises to clients.