Su Zhu, co-founder of Singapore-based crypto enterprise capital agency Three Arrows Capital (3AC), has put out a cryptic assertion on Twitter in response to swirling rumors that the corporate is battling in opposition to insolvency.

On-line chatter about 3AC being unable to fulfill a margin name started after 3AC began transferring property round this week to high up funds on decentralized finance (DeFi) platforms corresponding to Aave to keep away from potential liquidations amid the tanking worth of Ether (ETH) this week. There are unconfirmed studies that 3AC confronted liquidations totaling tons of of thousands and thousands from a number of positions.

DeFi-banking platform Celsius has additionally been frantically shoring up positions to keep away from liquidations. Celsius funds account for a big proportion of the overall worth locked in varied platforms within the DeFi ecosystem, whereas 3AC is a significant borrower. The collapse of both or each would have vital implications for all the area.

In a brief and candy Twitter publish from earlier on June 15, Zhu broke his silence after round three days of inaction on social media and suggested that the corporate is working by its points:

“We’re within the strategy of speaking with related events and absolutely dedicated to working this out.”

Messari Crypto’s Ryan Selkis highlighted hypothesis that 3AC began to reposition its steadiness sheet after being on the “flawed facet of two artificial trades — with dimension — in GBTC and stETH.”

Wu Blockchain additionally reported that the agency misplaced round $31.37 million by buying and selling on Bitfinex throughout Could.

The rumors ramped up after Zhu removed all point out of investments in ETH, Avalanche (AVAX), Terra (LUNA), Solana (SOL), Close to Protocol (NEAR), Mina (MINA), DeFi and nonfungible tokens (NFTs) from his Twitter bio, conserving solely a point out of Bitcoin (BTC). Others have raised questions on Su deleting his Instagram and requested why each he and co-founder Kyle Davies have been inactive on Twitter for 3 days.

A associated difficulty is 3AC’s earlier publicity to the Terra eco-system by way of the Luna Traditional (LUNC), which skilled a multi-billion market crash in late Could. The platform exchanged roughly $500 million value of Bitcoin  with the Luna Basis Guard for the equal fiat quantity in LUNA simply weeks earlier than Terra imploded.

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Different distinguished figures within the area corresponding to the previous head of crypto Cathie Wooden’s Ark Make investments, Chris Burniske, additionally pointed to rumors of 3AC being the subsequent agency to crumble after Terra and Celsius. Alameda Analysis was additionally loosely referenced by way of a meme.