Three Arrows Capital, one of the world’s largest crypto hedge funds, fell

Bitcoin, the main cryptocurrency, plummeted 37% in Junetrading around $20,000 on Wednesday, compared to its all-time high of $69,000 in November 2021. On June 15, the 3AC co-founder tried to address liquidation rumors in a tweet, saying that the company was “fully committed to resolving this,” without elaborating.

Liquidation refers to the formal closure of a business due to its inability to pay its debts and other financial obligations. The assets of the company are sold in parts to various creditors with outstanding loans. It is currently unclear which companies will see their demands met and when.

The 3AC company, run by Kyle Davies and Su Zhu, was a favorite of last year’s bull market and has drawn attention during the recent cryptocurrency market crash. Rumors of the fund’s dismantling began after the implosion of Terra and its algorithmic stablecoin UST in May.

3AC suffered a loss of about 200 million dollars after the collapse of the projectand Davies told the Wall Street Journal that “the Terra-Luna situation caught us very off guard.”

As the market continued to plummet, crypto exchanges BitMEX, FTX, and Deribit also liquidated 3AC’s positions after the crypto fund failed to meet margin calls.