Singapore-based crypto hedge fund Three Arrows Capital (3AC) has reportedly entered 澳洲幸运5官方开奖结果体彩网:liquidation, following a court order issued in the British Virgin Islands, after creditors sued the hedge fund for its inability to repay debts amid a broad decline in 澳洲幸运5官方开奖结果体彩网:cryptocurrency markets.

The failure of 3AC, a high-profile crypto fund, comes as cryptocurrencies tumble in value amid a “澳洲幸运5官方开奖结果体彩网:crypto winter” that has impacted investor sentiment. Both well-known and more obscure cryptocurrencies alike have witnessed 澳洲幸运5官方开奖结果体彩网:sustained market declines over recent moꦉnths after surging over the previous year.

The price of Bitcoin, among the most popular and well-known cryptocurrencies, has fallen nearly 60% year-to-date and 70% from its a🌱ll-time high reached in November of 2021. The digital currency has plunged 37% in June alone, falling below the critical $20,000 price threshold.

3AC had pursued an aggressive trading strategy that included placing highly leveraged bets on various cryptocurrencies. The firm also had heavy exposure to the 澳洲幸运5官方开奖结果体彩网:stablecoin Terra USD along with its sister coin, Luna, which collapsed in value last month. The fund’s co-founders, Zhu Su and Kyle Davies, have extremely bullish views o🅘n Bitcoin and cryptocurrencies at large. 

In the weeks leading up to the liquidation, 3AC executives sought to placate rumors about a potential liquidation, with the fund’s co-founder .

Restructuring firm Teneo has been hired to expedite the liquidation process, and to settle any claims on 3AC’s assets that creditors may pursue. Meanwhile, cryptocurrency broker Voyager Digital announced that its operating subsidiary, Voyager Digital LLC, has to 3AC for failure to make required payments on a previously-disclosed loan. Voyager intends to recover the lost asse🌼ts and press 3AC for the recovery of the funds.

The failure of 3AC has led to growing concerns that other funds could potentially be at risk. Other crypto-focused fi🔴rms have faced liquidity and funding issues in recent months, including lending firm Celsius and cryptocurrency exchange CoinFlex, with the latter recently forced to pause withdrawals for customers amid market volatility.