3AC co-founder Kyle Davies said that the reason their company went bankrupt was FTX, not LUNA.
Speaking about the collapse of Three Arrows Capital, Davies cited his liquidated positions in FTX as the reason for the events.
3AC Co-Founder Points to FTX
Meeting with Hugh Hendry on a podcast, Davies talked about the company’s problems. According to him, Three Arrows Capital said that although they managed to survive the LUNA collapse and the ensuing market crisis, they entered the process of collapse after being liquidated by FTX. The co-founder also stated that FTX and Alameda are exchanging information and hunting themselves because the trading firm knows their liquidation levels.
Davies spoke about the effects of LUNA on them:
“We invested $200 million and our assets went up to $600 million. Then it went down to zero. But we were a fund of over $4 billion, so it wasn’t a big hit.”
Expressing that people started to withdraw their funds due to the problems in the crypto ecosystem, Davies said that his company returned all the loans requested at that time.
Reminding that cryptocurrencies decreased by about 40%-50% after the events, Davies stated that even this did not lead to the liquidation of the company.
“There was no problem for us. We were injured but alive”
He said that after all that had happened, the liquidation of their positions in FTX dealt them the final blow.
“What killed us was our final position hunting in FTX after all these blows”
