Crypto hedge fund Three Arrows Capital (3AC) has entered liquidation, a person familiar with the matter told Reuters on Wednesday, in the latest sign of the market downturn hurting the crypto industry.
Singapore-based 3AC is one of the higher profile crypto investors to have run into difficulties following the sharp sell-off in the market for digital currencies seen in recent months.
Crypto broker Voyager Digital issued 3AC with a default notice on Monday after it failed to make payments on a loan of 15,250 bitcoin (approximately $324 million or nearly Rs. 2,500 crore) and $350 million (nearly Rs. 2,800 crore) worth of USDC, a stablecoin.
A British Virgin Islands court order also dated on Monday ordered 3AC’s liquidation.
Consultancy firm Teneo have been appointed as liquidators.
Top cryptocurrency Bitcoin has plunged some 37 percent in June, trading around $20,000 (nearly Rs. 16 lakh) on Wednesday, compared with its all-time high of $69,000 (nearly Rs. 54 lakh) in November 2021.
On June 15, 3AC’s co-founder sought to address liquidation rumors in a tweet, saying the company was “fully committed to working this out”, without going into further detail.
3AC did not immediately respond to a request for comment.
Last year in November, in a Series A funding round, crypto exchange platform WOO Network bagged $30 million (roughly Rs. 220 crore) from various investors, including Three Arrows Capital. A total of fourteen other venture capital firms participated in the round. The crypto startup WOO claims to offer deep liquidity and zero-fee trading to users on its crypto exchange.