3AC – The world’s leading cryptocurrency hedge fund goes bankrupt.

The collapse of 3AC deepens the liquidity crisis in the cryptocurrency ecosystem stemming from Bitcoin More than 70% of its market cap evaporated from an all-time high in November 2021.

According to The Block, 3AC lost at least $400 million due to market volatility.

Marcus Sotiriou, analyst at GlobalBlock, said:

“The collapse of Three Arrows Capital has led to the collapse of many other companies in the space. digital money, especially the units that this hedge fund has borrowed with huge amounts of money.”

Voyager Digital It suffered the consequences after 3AC failed to pay its debts. The exchange currently holds $685 million in crypto assets, while previously lending $1.12 billion.

Voyager Digital was forced to cut the user withdrawal limit from $25,000 to $10,000. The exchange has now suspended trading, sending and withdrawing funds on its platform.

“This was an extremely difficult decision, but we believe it was the right decision in the current market conditions,” chief executive Stephen Ehrlich said in a statement.

Meanwhile, digital currency lender BlockFi is estimated to face an $80 million loss from its loan to 3AC.

The company has previously accelerated loan settlement, full liquidation or price protection of all related collateral.