In the bear market of crypto assets in recent months, the two major CeFi companies most affected by the Terra crash, Celsius and Three Arrows Capital, have experienced liquidity crises. The lending platform Celsius has not yet opened customer withdrawal channels, and the hedge fund Three Arrows Capital is facing bankruptcy and liquidation.

In the face of the debt crisis, the two companies showed two completely different approaches. It is understood that on July 11, Celsius repaid 60 million USDC and 35 million DAI to DeFi lending protocols Aave and Compound respectively. This loan repayment released its $172 million in crypto asset collateral locked in DeFi.

Unlike Celsius, after facing a liquidation order from a court in the British Virgin Islands and applying for bankruptcy protection in the United States, the two founders of Three Arrows Capital were accused by creditors of not cooperating with the liquidation and their whereabouts are unknown.

Three Arrows Capital, also known as 3AC, is one of the most famous cryptocurrency hedge funds in the world. It was founded by two Wall Street foreign exchange traders Su Zhu and Kyle Davies. Approximately $10 billion in assets under management.

It is reported that the two founders of 3AC only participated in the preliminary Zoom conference call. The video and audio of the two were then turned off, and their respective legal representatives answered questions on their behalf. Neither of them appeared again, and lawyers suspected that the two might not be present. In addition, lawyers also discovered that Three Arrows Capital’s Singapore office had been abandoned, and it was reported that Su Zhu was still trying to sell his Singapore mansion worth US$35 million.