From $10 billion to zero: How a crypto hedge fund collapsed and dragged many investors down with it
— Money, Investors, Million, Davies, Crypto, Lenders, Fund, Hedge, Collapsed, Strategy — 1 min read
Three Arrows Capital, also known as 3AC, is headed to bankruptcy court. The firm managed about $10 billion in assets, making it one of the most prominent crypto hedge funds in the world. With the crypto market down by more than $1 trillion since April, investors with concentrated bets on firms like 3AC are suffering the consequences. 3AC had a lengthy list of counterparties, or companies that had their money wrapped up in the firm's ability to at least stay afloat, including Bitcoin and e-currencies firms like BitMEX and FTX. The filing alleges that the liquidation process hasn't started, meaning there's no cash to pay back the company's lenders. 3AC was supposed to be the adult in the room. Source