Crypto-focused hedge fund and venture capital firm Three Arrows Capital is considering the sale of remaining assets and even a bailout as it grapples with the prospect of insolvency in the wake of a violent collapse in digital asset markets. 

The firm, which also goes by 3AC, has hired legal and financial advisers to explore solutions for its investors and lenders, The Wall Street Journal reported Friday. Several options are on the table, including asset sales and a rescue package by another firm, co-founder Kyle Davies told the Journal. In the meantime, 3AC is looking to buy more time by negotiating a tentative agreement with existing creditors.

Davies, who said he still believes in the future of crypto, disclosed the extent of 3AC’s participation in a $1 billion token sale issued by Luna Foundation Guard (LFG), a nonprofit organization set up to defend the Terra ecosystem’s stablecoin peg, in February of this year. Davies said that 3AC bought roughly $200 million in LUNC (previously LUNA) tokens during the sale, which also had participation from venture firms DeFiance Capital, Republic Capital, GSR and Tribe Capital, among others.

Earlier this week, a whistleblower from the Terra Community Forum revealed that 3AC had purchased a total of 10.9 million locked LUNC worth nearly $560 million. That position is now worth less than $1,000.

In addition to being exposed to the Terra ecosystem collapse, 3AC incurred massive liquidations across multiple positions this week after the price of Bitcoin (BTC) and Ether (ETH) plunged to their lowest levels since December 2020.

Related: Su Zhu’s cryptic statement as rumors swirl of 3AC liquidations and insolvency

As Cointelegraph reported on Thursday, Three Arrows Capital failed to meet margin calls from a group of lenders that included BlockFi. These firms liquidated at least some of 3AC’s positions.