Staked Ethereum (stETH) assets in a wallet belonging to crypto hedge firm Three Arrows Capital were liquidated on Friday. stETH and Ethereum (ETH) assets have recently been sold by the hedge fund on the verge of bankruptcy in order to pay off obligations and unpaid loans.
The crypto industry would suffer greatly if Three Arrows Capital is forced to go out of business. In the event of another crypto market collapse, almost billions of dollars might be wiped out.
Using its wallet address 0x3ba21b6477f48273f41d241aa3722fffb9e07e247, Three Arrows Capital traded 5500 stETH for 6.1 million USDT yesterday. The wallet address had a balance of 14,118 stETH after the transaction.
But on June 17th, Three Arrows Capital exchanged the remaining 14,118 stETH for about $13.5 million USDT in two transactions. Etherscan records show that the corporation first purchased 7000 stETH for USDT 6.86 million and then purchased 7118 stETH for USDT 6.79 million in the following two transactions.
Three Arrows Capital (3AC) has been steadily dumping stETH. People mistakenly believe that Celsius is the most prolific stETH dumper, but in reality it is 3AC. Each and every account and seed round address owned by the crypto hedge fund is being flooded with stETH. Ethereum and stETH holdings have been drastically cut by the corporation over the previous two months.
BlockFi, for example, has begun selling its shares in Three Arrows Capital. In addition, a number of 3AC-affiliated businesses are having operational difficulties. These are also still at danger of being liquidated. Finblox, a CeFi firm, has, for example, put a halt to its award payouts due to the volatility of 3AC.
Three Arrows Capital’s collapse might be devastating for the cryptocurrency industry, with assets under control totaling up to $18 billion.
Other Three Arrows Capital assets, such as Bitcoin, Solana, Kusama, Avalanche, Polkadot, and others, should be monitored as well. These tokens will be wiped out if the financial situation worsens any more.
As crypto businesses continue to exchange stETH, the price of the cryptocurrency has slipped below $1000 once again. StETH is trading at $1,027 as of this writing; it has fallen by more than 4 percent since this time last week. In the meanwhile, the stETH-to-ETH ratio has dropped to 0.93 in the previous 24 hours, according to the latest data.