Three Arrows Capital (3AC) has suffered large losses due to its heavy investment in Terraform Labs’ sister tokens, LUNC (formerly LUNA), and TerraUSD (UST). The Singapore-based hedge fund manager has found itself in an unpleasant situation and it is rumored that the firm is facing liquidations amounting to hundreds of millions of dollars.

According to the data on Bitfinex’s leaderboards, 3AC lost a total of $31,370,031.97 in May. The hedge fund’s accounts for June were not recorded.

It is reported that the address designated as 3AC has a debt of $183 million in stablecoins USDT and USDC and in addition to that there’s also 211,999.12aWETH ($235 million) in collateral on AAVE V2.

However, Three Arrow Capital’s capital-backed NFT funds also relocated the complete collection to the SuperRare marketplace, although the reason for that is unknown. But, it won’t make any difference for the funds due to the poor demand on the NFT market and the decline in the value of Ethereum due to the current situation of the crypto market.

In addition, the co-founders of 3AC, Zhu Su and Kyle Davies were off the grid for three days, which left investors in a state of confusion. Zhu has since resurfaced and has assured investors that they’re doing all they can to control the situation. Some investors who have accounts in Three Arrows Capital have also come out to accuse the fund of taking out capital from their pockets.

Featured image source: Watcher Guru.