The organization's co-founder has stated that it is considering liquidating assets or enlisting help from another company.
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As reported by the WSJ, cryptocurrency fund Beleaguered Capital (3AC) confirmed that it suffered heavy losses during the recent market downturn. The unit also said it had hired legal and financial advisers to figure out how to resolve it, according to a WSJ report.
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"We are committed to solving the problem and finding a solution that is fair to all of our members," 3AC co-founder Kyle Davies told the WSJ.The fund had more than $3 billion in cryptocurrencies under management as of April.
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3AC is exploring options including selling assets and enlisting help from another company. They hope to reach an agreement with the creditors. According to a separate report by The Block, the unit owes at least $6 million to be able to conduct a BitMEX cryptocurrency exchange.
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Davies said 3AC invested more than $200 million in LUNA tokens as part of a $1 billion fundraiser by luna foundation guard in February, an amount that has been essentially worthless since the Terra ecosystem exploded in mid-May.
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LUNA lost nearly all of its value over the course of a week, while stablecoins according to terraUSD ecosystem algorithms (UST) fell to a few coins after losing their intended peg with the U.S. dollar.
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3AC is also known to be one of the largest holders of the Grayscale Bitcoin Trust (GBTC) – an institutional bitcoin product, as well as ether tokens (stETH). Both have fallen sharply recently.
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Davies added that 3AC is working to identify losses and value its illiquid assets, including more Venture Capital investments in cryptocurrency startups.
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Meanwhile, Nichol Yeo, a partner at law firm Solitaire LLP, told the WSJ that it is monitoring Singapore's financial regulator, the Monetary Authority of Singapore, and monitoring the recent developments of 3AC.
