The crypto market has suffered heavy losses, with companies such as Coinbase, Gemini, Blockfi, and Crypto.com laying off thousands of employees, as investors sell risky assets in a rising interest rate environment.
The ten-year-old hedge fund, founded by Su Zhu and Kyle Davies, has hired legal and financial advisers to help it work out a solution for its investors and lenders, according to the report, which cited the company’s founders.
“The Terra-Luna situation caught us very much off guard,” Davies said, according to Wall Street Journal, adding that Three Arrows invested about $200 million in Luna.
Cryptocurrency markets were rocked last month by the spectacular collapse of terraUSD and its sister token luna after the stablecoin lost its peg to the dollar.
