Three Arrows Capital (3AC), a prominent crypto hedge fund, is reported to be facing potential insolvency issues following liquidations totalling more than $400 million.
According to multiple high-profile companies in the industry, 3AC is currently figuring out how to repay lenders and counter-parties, with co-founder Su Zhu recently posting a tweet conveying a similar message.
Zhu was a vocal crypto bull until late May, who was famed for his "supercycle" price thesis – the idea that crypto would never enter a significant downturn this market cycle.
Stablecoin company Tether has denied rumors that commercial paper reserves backing USDT are 85% Chinese or Asian-based. It also denies that it has lending exposure to Three Arrows Capital.
Tether's reserves have long been a concern to the wider crypto market, due to a lack of transparency. CTO Paolo Ardoino says the company is looking to reduce its commercial paper holdings to $8.4 billion by the end of June (from $30.8 billion last year).
Crypto exchange giant Binance is reportedly increasing its pace of hiring for "crypto winter," according to CEO Changpeng Zhao – a stark contrast to moves by other exchanges.
Zhao says they will leverage the quiet period to build, as crypto is still in its very early stages. Coinbase and Gemini recently announced cutting employee counts by 18% and 10%, respectively.
