One of the victims of the “crypto-winter” was the liquidation of a significant cryptocurrency hedge fund Three Arrows Capital, the root cause of which was the collapse in the price of digital currencies, which resulted in the disappearance of billions of dollars from the market in recent weeks, writes CNBC.

Teneo Restructuring is involved in liquidating the hedge fund: this debt restructuring firm is taking steps to sell the assets that 3AC owned. Then in the next day or two, it will create a website with instructions on how creditors can contact it to file claims.

3AC, co-founded by Joo Soo and Kyle Davis, was one of the best-known cryptocurrency hedge funds focused on investing in digital assets such as cryptocurrencies and was known for its high leverage bets. One of the fund’s founders had a highly optimistic view of bitcoin.

The collapse in the digital currency market, which has wiped billions of dollars off the market in recent weeks, exposed the company’s liquidity crisis.

On Monday, 3AC defaulted on a $350 million loan from Voyager Digital in staple dollar-linked USDC and 15,250 bitcoins, which is about $304.5 million at today’s prices.

3AC is facing a drop in the Terra USD algorithmic stablecoin and the Luna token.

U.S. cryptocurrency lenders BlockFi and Genesis liquidated some of 3AC’s positions. The hedge fund took a loan from BlockFi but failed to meet the margin requirement.

A margin call is when an investor must allocate more funds to avoid losses on a leveraged transaction.

The termination of 3AC has raised fears that the insolvency crisis will spill over to the parts of the market that will be affected by the liquidation of this company.

Other cryptocurrency companies have also faced liquidity problems. For example, credit firm Celsius and cryptocurrency exchange Coin Flex were forced to suspend customer withdrawals, citing “extreme market conditions.”

However, Coin Flex had another problem with a customer who could not repay $47 million in debt, creating a liquidity problem for the company.

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