Singapore-based crypto hedge fund Three Arrows Capital has entered liquidation, as the crypto bloodbath continues.
Three Arrows, sometimes known as 3AC, was issued a default notice on Monday by cryptocurrency broker Voyager Digital, after failing to repay a loan of 15,250 bitcoin (roughly US$324mln) and stablecoin USDC worth US$350mln.
3AC's liquidation was also ordered by a British Virgin Islands court the same day.
With bitcoin, the largest cryptocurrency, having plunged around 37% in June to around US$20,000 from a November peak of US$69,000, the downturn in crypto saw Three Arrows Capital follow Terraform Labs and Celsius into liquidation.
Consultancy firm Teneo has been appointed as liquidators of the fund co-founded by former Credit Suisse traders Zhu Su and Kyle Davies ten years ago.
In addition to US-based crypto lender BlockFi and Genesis, several creditors have already begun liquidating Three Arrows Capital positions.
The first signs that not all was well at Three Arrows emerged several weeks ago, when Zhu tweeted it was “in the process of communicating with relevant parties" and fully committed to finding a solution, without elaborating on any particular issue.
Later, the company acknowledged heavy losses. Over US$3bn worth of cryptocurrencies were under management and a bailout was being explored, with creditors, including BitMEX, also putting pressure on them.