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Major cryptocurrency hedge fund Three Arrows Capital has fallen into liquidation, a person with knowledge of the matter told CNBC, marking one of the biggest negative news to add up to the latest  “crypto winter.”

Sky News first reported the liquidation story.

Teneo is in the very early stages of the liquidation process, the person said. The restructuring firm is taking steps to realize the assets 3AC has, then it will set up a website in the next day or two with instructions for how creditors can get in touch to make any claims, the source added.

3AC, co-founded by Zhu Su and Kyle Davies, is one of the most prominent crypto hedge funds (it focuses on investments in digital assets like cryptocurrencies) and is known for its highly leveraged bets. Zhu has extremely bullish views on bitcoin.

But a dramatic plunge in digital currency prices, which has seen billions of dollars wiped off the market in recent weeks, has hurt 3AC and exposed a liquidity crisis at the company.

On Monday, 3AC defaulted on a loan from Voyager Digital made up of $350 million in the U.S. dollar-pegged stablecoin, USDC, and 15,250 bitcoin, worth about $304.5 million at today’s prices. 3AC had exposure to the collapsed algorithmic stablecoin terraUSD and sister token luna.

The Financial Times reported earlier this month that U.S.-based crypto lenders BlockFi and Genesis liquidated some of 3AC’s positions, citing people familiar with the matter. 3AC had borrowed from BlockFi but was unable to meet the margin call.

Other cryptocurrency companies have also faced the same liquidity issues. For instance, lending firm Celsius and cryptocurrency exchange CoinFlex were forced to pause withdrawals for customers both citing “extreme market conditions.”

CoinFlex however had another issue with a customer that failed to repay a $47 million debt, causing a liquidity problem for the company.