Singapore-based 3AC is one of the high-profile crypto investors that has struggled following the strong sell-off in the digital currency market seen in recent months.
Crypto hedge fund Three Arrows Capital (3AC) has gone into liquidation, a person familiar with the matter told Reuters on Wednesday, in the latest sign that the market downturn is taking its toll on the crypto industry.
Singapore-based 3AC is one of the high-profile crypto investors that has struggled following the strong sell-off in the digital currency market seen in recent months.
Crypto broker Voyager Digital issued 3ACs with a default notice on Monday after it failed to make payments on a loan of 15,250 bitcoin (approximately $324 million) and $350 million in USDC, a stablecoin.
A court order from the British Virgin Islands also dated Monday ordered the liquidation of 3AC.
The consultancy firm Teneo has been designated liquidator.
Bitcoin, the leading cryptocurrency, plunged 37% in June, trading around $20,000 on Wednesday, compared with its all-time high of $69,000 in November 2021.
News of the 3AC liquidation was first reported by broadcaster Sky on Wednesday.
On June 15, the 3AC co-founder tried to address the liquidation rumors in a tweet, saying the company was “fully committed to resolving this,” without elaborating.