Crypto hedge fund Three Arrows Capital liquidated all Staked Ethereum (stETH) holdings in one of its wallets on Friday. The hedge fund on the brink of insolvency has been selling its stETH and Ethereum (ETH) holdings recently to pay back debts and outstanding loans.
The consequences of Three Arrows Capital’s liquidation will be severe for the crypto market. The crypto market could possibly crash again, causing almost billions in liquidation.
Three Arrows Capital Continues To Dump stETH
Three Arrows Capital had swapped 5500 stETH for 6.1 million USDT yesterday from its wallet address 0x3ba21b6477f48273f41d241aa3722ffb9e07e247. After the transaction, the wallet address had nearly 14,118 stETH balance.
However, on June 17, Three Arrows Capital swapped the remaining 14,118 stETH for around 13.5 million USDT in two transactions. According to Etherscan data, the company first, 7000 stETH for 6.86 million USDT, and again, 7118 stETH for 6.79 million USDT.
Three Arrows Capital (3AC) has been dumping stETH continuously. In fact, people think Celsius is the biggest stETH dumper, but it’s 3AC. The crypto hedge fund is dumping stETH on every account and seed round address they have. The company has reduced its Ethereum as well as stETH holding massively in the last 2 months.
