Su Zhu, co-founder of Singapore-based cryptocurrency venture capital firm Three Arrows Capital (3AC), released a cryptic statement on Twitter in response to rumors that the company was battling insolvency.

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The online chatter about 3AC failing to meet a margin requirement began after 3AC began moving assets around this week to fund funds on DeFi platforms like AAVE to avoid potential liquidations amid falling Ethereum (ETH) prices. ) this week. There are unconfirmed reports that 3AC has faced liquidation totaling hundreds of millions across multiple positions.

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DeFi banking platform Celsius is also frantically strengthening its position to avoid liquidation. Celsius funds make up a significant proportion of the total value locked across various platforms in the DeFi ecosystem, and 3AC is a large borrower. The collapse of one or both of them will have serious consequences for the entire cosmos.

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In a short and sweet Twitter mail Earlier today, Zhu broke his silence after three days of inactivity on social media and suggested that the company was working on its issues:

“We are in the process of communicating with the relevant parties and are fully committed to resolving this issue.”

Ryan Selkis of Messari Crypto dedicated the suggestion that 3AC began to change its balance after it was “on the wrong side of two synthetic trades – with a size – in GBTC and stETH.”

Wu Blockchain also reported that the firm lost about $31.37 million trading on Bitfinex in May.

The rumors intensified after Zhu remote all mentions of investments in ETH, AVAX, LUNA, SOL, NEAR, MINA, DeFi and NFT are from his Twitter bio, leaving only the mention of Bitcoin (BTC). Others have asked questions about Su deleting his Instagram and asking why both he and co-founder Kyle Davis have been inactive on Twitter for three days.

A related issue is the previous impact of 3AC on the Terra ecosystem through the LUNA token (now LUNAC), which experienced a multi-billion dollar market crash at the end of May. The platform exchanged about $500 million worth of bitcoin (BTC) with the Luna Foundation Guard for the equivalent amount in LUNA just a few weeks before the Terra explosion.

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Other prominent figures in the field, such as former Ark Invest crypto head Kathy Wood Chris Berniske, have also pointed to rumors that 3AC will be the next firm to collapse after Terra and Celsius. Alameda Research has also been mentioned in memes.