Three months ago, Three Arrows Capital managed about $10 billion in assets, making it one of the largest crypto hedges globally.
Now the company, also known as 3AC, is hea Crypto exchange Blockchain.com reportedly faces a $270 million hit on loans to 3AC. Furthermore, digital asset brokerage Voyager Digital filed for Chapter 11 bankruptcy protection after 3AC couldn’t pay back the roughly $670 million it had borrowed from the company. U.S.-based crypto lenders Genesis and BlockFi, crypto derivatives platform BitMEX and crypto exchange FTX are also being hit with losses. “Credit is being destroyed and withdrawn, underwriting standards are being tightened, solvency is being tested, so everyone is withdrawing liquidity from crypto lenders,” said Nic Carter, a partner at Castle Island Ventures, which focuses on blockchain investments.
