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Three Arrows Capital, 3AC is a $10 billion dollars hedge fund that recently went bankrupt. The hedge fund is located in Singapore. Due to mismanagement of funds poor checking making, and lack of supervision , 3AC has collapsed. 

The 3AC hedge fund collapsed in the bear market which initially people taught was the reason. Little did we know it was partly due to poor decision making in making large transactions in Grayscale Bitcoin trust, Lunar, among others.

Most of us do not need a refresher of what happened with  LUNA last year but for those of that are not aware, the crypto project collapsed. Some people have blamed the owners of the LUNA project for this collapse and despite measures that seemed to have been put in place to tackle the sudden crash, it did not work. 

It has resulted in the created of Luna 2.0 which is currently valued at $1.743 at the time of writing. This Luna 2.0 named LUNA was created in an attempt to re launch the project and assure investors it is not a scam.

3AC not only made transactions with LUNA and bitcoin trust but also borrowed large sums of money huge financial institutions and because of its collapse, they have to find means of paying. This has led to the liquidators seizing the projects assets which include the NFTs. 

People who knew of the large transactions 3AC made with platforms like LUNA were alarmed when LUNA crashed especially when prior to the crash, 3AC and LUNC (Lunar 1.0) exchanged assets worth more than $500 million in bitcoin, BTC. 

This brought signs of insolvency, a state where 3AC wouldn’t be able to pay of its debts and a possible liquidation. Confirmation of this insolvency later emerged when the CEO, Zhu Su and Kyle Davies the other owner on twitter removed mentions of having investments with LUNC, , MINA, AVAX, SOL, NEAR, and other cryptocurrencies from their bio. They removed all except one, bitcoin which raise alarmed bells. 

There has also been claims that 3AC used funds of their clients to bet all in an attempt to recuperate their mess in lost funds. 

Fast forward, 3AC have filed for bankruptcy and as a result have had their assets like NFTs seized by their liquidators. These NFTs are going to be sold so the liquidators can recover their loans. 

Christopher Farmer who is a joint liquidator for 3AC announced on Wednesday February 22, 2022 that the liquidators were going to start selling off 3ACs NFTs. The value of NFTs aren’t always known and in this statement it was published the value of these NFTs will be known when they start selling. 

Three Arrow Capital has found themselves in this predicament because they mismanaged their funds and partly due to the bear market and the LUNC crash. It goes to tell us the aftermath of LUNC despite the fact that this happened in June 2022. 

This continues to tell us that we should always try as much as possible to do our due diligence into crypto projects and from time to time continue with analysis to understand what is happening back stage. 

It also tells us to as much as possible diversify our portfolio so we are not found wanting in situations like these where we have all our money in one investment. 



Thank you.
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Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@yahuzah/nfts-of-3ac-to-be-sold-by-liquidators-mismanagement-of-funds-and-aftermath-of-lunc-crash)

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@yahuzah/nfts-of-3ac-to-be-sold-by-liquidators-mismanagement-of-funds-and-aftermath-of-lunc-crash)