A prominent figure in the crypto space, Three Arrows Capital is the latest casualty of the recent market plunge.
Three Arrows Capital
Cryptocurrency hedge fund Three Arrows Capital (3AC) has become the latest casualty of the market decline, with the firm now facing liquidation.
Earlier this month, crypto bank Voyager revealed the Singapore-based hedge fund risked defaulting on loans worth several hundred million dollars.
Voyager clarified the situation on Monday 27th June, revealing that 3AC owed an outstanding loan of $650 million and that the crypto bank had issued a default notice for “failure to make the required payments on its previously disclosed loan of 15,250 bitcoin and $350m”.
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In a statement, Stephen Ehrlich, chief executive at Voyager, said: “We are working diligently and expeditiously to strengthen our balance sheet and pursuing options so we can continue to meet customer liquidity demands.”
Reports from Sky News on Wednesday confirmed that consultancy firm Teneo has been appointed to oversee the liquidation.
Turbulent crypto landscape
Founded in 2012, Three Arrows Capital once managed more than $18 billion in assets, but has become the latest in a number of high-profile failures in the wake of the crypto crash.
While the global market was already experiencing a decline, the collapse of the Terra and Luna stablecoins sent a number of currencies into freefall. The collapse of Celsius at the beginning of June further compounded the situation.