Three Arrows Capital (3AC) is rocking the crypto market today with reports that the hedge fund has started the liquidation process.
According to the recent reports, a court of the British Virgin Islands ordered the Singapore-based crypto hedge fund to start this liquidation process. Unnamed sources say the court order came in on Monday. These reports from insiders also claim that Teneo, a consulting company, is taking care of the liquidation process.
The liquidation of 3AC comes after the company defaulted on a loan earlier this week. That loan was from Voyager Digital (OTCMKTS:VYGVF). It included $350 million of stablecoin USDC (USDC-USD), as well as 15,250 Bitcoin (BTC-USD) with a total value of about $304.5 million.
FSInsight released a report last week taking 3AC to task and calling it a “Madoff-style Ponzi scheme.” Here’s a portion of that report collected by CoinDesk:
The macro conditions preceded destruction in global asset prices, reducing the collateral value of any crypto asset, and 3AC was heavily invested in LUNA/UST, which couldn’t have helped the situation, however, we think the downward spiral started with 3AC’s overleveraged bet on Grayscale Bitcoin Trust (GBTC).
The fall of 3AC is playing havoc with the crypto market today. This has several big names in the space, such as Bitcoin and Ethereum (ETH-USD), taking a beating. BTC is down 2.8% and ETH is down 6.6% over the prior 24-hour period as of Wednesday afternoon.
There’s loads of more crypto news that traders will want to know about below!
We’ve got all the most recent crypto coverage that investors need to get through the day! Among that are Numerai (NMR-USD) price predictions, MicroStrategy (NASDAQ:MSTR) stock falling, as well as a breakdown of Bitcoin options. You can read all of that news at the following links!
More Crypto News for Wednesday
- Numeraire Price Predictions: How High Can the NMR Crypto Go?
- MicroStrategy (MSTR) Stock Falls as Michael Saylor Buys More Bitcoin
- Bitcoin Opportunities Are Brewing for the Second Half of the Year
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.