As reports of 3AC insolvencies circulate, Su Zhu makes a mysterious comment

Su Zhu commented, “We are in the importance of involving the parties concerned and are totally dedicated to sorting this out.”

Su Zhu, the co-founder of Three Arrows Capital (3AC), a Singapore-based cryptocurrency venture capitalist, issued an enigmatic message on Twitter in reaction to speculation that the business is facing bankruptcy.

Online speculation that 3AC would be unable to fulfill a margin account arose after the company began shifting resources around now to top up money on Defi networks like AAVE to prevent possible insolvencies as the value of Ether (ETH) plummeted. Unverified sources report that 3AC faced huge amounts of money in sell-offs from several sources.

After three days of silence on social media, Zhu made his statement with a brief and sweet Twitter statement today, implying that the group is functioning through its concerns:

“We’re in the communication process with the appropriate people and are totally dedicated to resolving this.”

After being on the “losing end of various synthetic trades – with size — in GBTC and stETH,” according to Messari Crypto’s Ryan Selkis, 3AC began to restructure its financial statements.

Wu Blockchain also said that its transactions on Bitfinex cost the company $31.37 million in May.

The speculation grew after Zhu withdrew all references to his investments in ETH, AVAX, LUNA, SOL, NEAR, MINA, Defi, and NFTs from his Twitter bio leaving only a reference to Bitcoin (BTC). Others have questioned Su’s decision to delete his Instagram account, as well as why he and his co-founder Kyle Davies were both silent on Twitter for three days.

3AC’s past connection to the Terra ecosystem via the LUNA token (now LUNAC), which witnessed a mega-dollar financial meltdown in late May, is a connected issue. Just days before Terra crashed, the site swapped around $500 million worth of Bitcoin (BTC) with the Luna Project Guard for the same fiat value of LUNA.