Cryptocurrency hedge fund Three Arrows Capital (3ac) faces a crisis. The company couldn't meet lender demands of margin calls and liquidates its crypto holdings, which increases pressure on the market.
According to Wall Street Journal, the company considers asset sales, seeking a bail out. The recent fall of cryptocurrencies had a considerable negative impact on the companies and Singapore-based companies became one of the most affected ones. Founded in 2012, it has been a leading company in the crypto sector with investments across lending and trading platforms.
Crypto services provider BlockFi liquidates some of the hedge fund's positions. This means the company reduced its exposure by taking collateral the fund had put down to back its borrowing.
3ac co-founder Zhu Su tweeted the team is in the process of communicating with relevant parties and fully committed to working the situation out.
Recently, Galax Digital CEO Mike Novogratz predicted that equity and crypto investors will see difficulties, and most hedge funds may close.