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Jul 22, 2022
by Jafrin Ahmed
3AC Founders Finally Speak Out After Five Weeks in Hiding
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The disgraced founders of bankrupt crypto hedge fund Three Arrows Capital (3AC) finally speak out in an interview with Bloomberg after hiding for over five weeks.
3AC Founders Flying Out To Dubai
"We believed in everything to the fullest. We had all of our, almost all of our assets in there. And then in the good times we did the best. And then in the bad times we lost the most," Davies said.
Both Davies and Zhu acknowledged the heavy losses related to trades in Luna and its sister stablecoin TerraUSD, saying they were caught by surprise at the speed of the collapse of these tokens.
"What we failed to realize was that Luna was capable of falling to effective zero in a matter of days and that this would catalyze a credit squeeze across the industry that would put significant pressure on all of our illiquid positions," Su Zhu said.
Responding to questions about what took the firm down, Zhu attributed the firm's failure to overconfidence born of a multiyear bull market that infected not just him and Davies but almost every credit system in the industry.
For now, the two co-founders transiting to Dubai plan to shift their business to the upcoming digital asset hub.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.