Three Arrows Capital is now in the process of being liquidated by cryptocurrency lending platforms

After failing to meet its margin calls, BlockFi, one of the main decentralized finance (DeFi) lending organizations, has already liquidated 3AC.

As a result of the continuous cryptocurrency market downfall, the crypto hedge fund and venture capital firm is exploring the option of selling its remaining assets or perhaps seeking a bailout.

The Wall Street Journal also confirms the same with a report stating that Three Arrows Capital is exploring asset sales and a bailout option as it faces a serious liquidity issue.

Three Arrows Capital is said to have employed legal and financial advisers to assist in the development of a strategy to repay investors and lenders.

Founders Discuss Bailout Option

According to a piece written in The Wall Street Journal on Friday, Three Arrows Capital may sell its assets or seek a bailout from another business to address its persistent liquidity issues.

Su Zhu and Kyle Davies, the crypto hedge fund’s founders, revealed to the world in an interview with the New York newspaper that they had sought legal and financial advice as they attempted to manage their largest crisis yet as a result of the recent fall in the cryptocurrency market.

Davies stated that they are dedicated to exploring different options and finding the best possible solution for all of their stakeholders before announcing that the fund was considering asset sales and a possible bailout.

As it formulates a plan, the company also hopes to buy more time with creditors.

This news comes after earlier this week when the crypto world speculated that Three Arrows was approaching insolvency.

Source: crypto hot news