06-20-2022 icon

DeFiance, dydx, Avalanche Dissociate From Three Arrows Capital Scandal

By Lucy Adegbe

Global Crypto-focused web3 DeFiance, blockchain platform Avalanche, and Ethereum-based blockchain exchange dydx have all expressed concerns with community speculations as investors evaluate probable defects suspected to be a result of Three Arrows Capital’s financial struggles. 

The three firms, somewhat backed by 3AC, proceeded to dissociate themselves from the drama as 3AC may indeed be dealing with unforeseen bankruptcy due to the liquidation of more than $400million incurred as reported by The Block on Wednesday. 

The well-recognized crypto fund is presumed to also be affected by the obvious harshness of the market as well as the hitches from Celsius Network.

A Thursday night tweet from the official page of dydx stated that “dYdX is not exposed to 3AC contagion in any way.”

In tweets from Defiance Capital, Arthur Cheong highlighted that everyone’s hands are on deck to ensure a resolution to all hitches hours after Messari’s Ryan Selkis analyzed that 3AC’s $1 billion liability may be the end for funds like Defiance. 

Smart contract platform, Avalanche also tweeted for public clarification saying, “Due to recent speculations, but we’d like to clarify that 3AC has never in any way managed, used or custodied any Avalanche foundation treasury funds.”

Dubai-based firm, 3AC oversaw billions of dollars of funds in the past years and its creators, Su Zhu and Kyle Davies have been among the ample crypto community partakers. 

Although the firm is yet to give any official statement relating to previous broadcasts and speculations, Zhu has tweeted with concerns stating that they “are in the process of communicating with relevant parties and funky committed to working this out.”