One of the biggest cryptocurrency funds in the world just went bankrupt | capital

Bitcoin 'mining' machine

Three Arrows Capital (3AC), one of the leading funds hedge of cryptocurrencies in the world, is being liquidated, according to a report by SkyNews. The liquidation has been confirmed by other news outlets and represents the latest evidence of the dimensions of the so-called “crypto winter”, with possible systemic implications.

Based in Singapore, 3AC once had $18 billion in assets in its portfolio, but has been tangled up in the rapid devaluation of cryptocurrencies in recent months. (In June alone, bitcoin lost more than a third of its value.) On Monday, crypto exchange Voyager Digital signaled that 3AC was going into default. 3AC had not repaid a loan of more than 15,000 bitcoins and other cryptocurrencies, for a total of nearly $700 million.

The settlement was determined by a court in the British Virgin Islands, a tax haven. According to CNBC, the consultancy Teneo will take over the liquidation process.

On Friday, investment analyst firm FSInsight accused 3AC of being behind a “Ponzi-style [Bernard] Madoff” — that is, a pyramid scheme — reports CoinDesk.

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