Ethereum competitor Avalanche said on Friday that it has little exposure to beleaguered hedge fund Three Arrows Capital, as the latter faces a potential insolvency.
The blockchain said in a tweet that Three Arrows never had any control over Avalanche’s treasury funds.
Avalanche’s comments come as Three Arrows faces the potential liquidation of its positions as the hedge fund failed to meet several margin calls by lenders.
The hedge fund was a major investor in Avalanche in 2021, and likely holds AVAX tokens.
Three Arrows Capital led an Avalanche funding round
3AC along with Polychain led a $230 million investment in Avalanche last year, that saw the blockchain issue AVAX tokens to Three Arrows in a private sale.