Crypto hedge fund Three Arrows Capital (3AC) has entered liquidation, a person familiar with the matter told Reuters on Wednesday, in the latest sign of the market downturn hurting the crypto industry.

Singapore-based 3AC is one of the higher profile crypto investors to have run into difficulties following the sharp sell-off in the market for digital currencies seen in recent months.

Crypto broker Voyager Digital issued 3AC with a default notice on Monday after it failed to make payments on a loan of 15,250 bitcoin (approximately $324 million) and $350 million worth of USDC, a stablecoin.

A British Virgin Islands court order also dated on Monday ordered 3AC’s liquidation.

Consultancy firm Teneo have been appointed as liquidators.

Top cryptocurrency bitcoin has plunged some 37 per cent in June, trading around $20,000 on Wednesday, compared with its all-time high of $69,000 in November 2021.

News of 3AC’s liquidation was first reported by broadcaster Sky on Wednesday.

On June 15, 3AC’s co-founder sought to address liquidation rumours in a tweet, saying the company was “fully committed to working this out”, without going into further detail.

3AC did not immediately respond to a request for comment.

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