<p><span style="font-weight: 400;">After a difficult week, crypto hedge fund Three Arrows Capital (3AC) has hired legal and financial advisers to help work out the best way to manage losses from a broader market selloff in digital assets, according to reports. </span></p> <p><span style="font-weight: 400;">3AC co-founder Kyle Davies </span><a href="https://www.wsj.com/articles/battered-crypto-hedge-fund-three-arrows-capital-considers-asset-sales-bailout-11655469932?mod=Searchresults_pos1&amp;page=1"><span style="font-weight: 400;">told The Wall Street Journal</span></a><span style="font-weight: 400;"> on Friday that the firm was “committed to working things out and finding an equitable solution for all our constituent [sic].”</span></p> <p><span style="font-weight: 400;">“We have always been believers in crypto and we still are,” Davies said. </span></p> <p><span style="font-weight: 400;">Founded in 2012 by former classmates Su Zhu and Davies, 3AC had grown into one of the biggest and best-known crypto hedge funds. Still, last month's </span><a href="https://www.theblock.co/post/146309/luna-terra-ust-terrausd-markets-crypto-blockchain"><span style="font-weight: 400;">collapse</span></a><span style="font-weight: 400;"> of the Terra ecosystem resulted in a significant hit for 3AC as its investment in Terra's native luna token sank to almost zero. Davies told the Journal that the firm had put $200 million into Luna. </span></p> <p><span style="font-weight: 400;">Davies said that the Terra-Luna situation caught the firm “very much off guard.”</span></p> <p><span style="font-weight: 400;">The WSJ also reported comments from Davies indicating that the hedge fund is exploring both asset sales and a rescue by another company. It is also trying to reach agreements with creditors, which could buy it time. </span></p> <p>It has brought on Nichol Yeo, a partner at the law firm Solitaire LLP to advise. </p> <p><a href="https://www.theblock.co/post/152665/ftx-deribit-bitmex-liquidated-three-arrows-capital?utm_source=rss&amp;utm_medium=rss"><span style="font-weight: 400;">Sources had told The Block</span></a><span style="font-weight: 400;"> earlier on Friday that crypto exchanges FTX, Deribit and BitMEX had liquidated Three Arrows Capital's positions over the past week, after the crypto hedge fund failed to meet margin calls.</span></p> <p><span style="font-weight: 400;">The moves come amid a broader crypto market rout that has seen firms struggle to make good on their promises to clients. Earlier on Friday, </span><a href="https://www.theblock.co/post/152677/babel-finance-suspends-withdrawals-citing-unusual-liquidity-pressures?utm_source=rss&amp;utm_medium=rss"><span style="font-weight: 400;">Babel Finance suspended withdrawals</span></a><span style="font-weight: 400;">, citing “liquidity pressures.” </span></p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>