Crypto hedge fund Three Arrows Capital has filed for bankruptcy. Here's the latest on the companies hit by the liquidity crunch.
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Hedge fund Three Arrows Capital files for Chapter 15 bankruptcy in a Manhattan federal court Friday. 3AC is the latest company to collapse in a liquidity crisis spurred by the crypto crash this year. The liquidity crisis in the crypto ecosystem stems from cryptocurrencies' dismal performance in 2022, which has seen leading token bitcoin plummet 70% from its all-time high in November. The collapse of 3AC has triggered the downfall of many other companies across the crypto space, particularly lenders who the hedge fund borrowed from in enormous sums, analyst Marcus Sotiriou said in a research note Monday.Here are the high-profile crypto lending platforms and exchanges struggling with the impact of the liquidity crisis: 3AC, Voyager Digital, Bancor, Babel Finance and Vauld. Source