The Hedge Fund 3AC is under investigation for defrauding the crypto industry and Blockchain.com has declared that it is assisting with ongoing investigations.
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According to Bloomberg on Friday, the troubled hedge fund Three Arrows Capital (3AC) was under pressure to be liquidated by creditors including the cryptocurrency exchanges Blockchain.com and Deribit.
According to the story, which cited a spokesman, Blockchain.com has also declared that it is assisting with ongoing investigations into the hedge fund that “defrauded the crypto industry.”
Earlier this week, a British Virgin Islands court ordered 3AC to be liquidated. Teneo Restructuring, based in New York, was enlisted to handle the insolvency and work with the creditors.
The recent crash in the cryptocurrency markets caused 3AC to suffer significant losses, and insolvency concerns were first reported in mid-June when the company spent at least $400 million on liquidations.
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Deribit, a cryptocurrency derivatives exchange, was one of those to liquidate 3AC’s capital positions after the hedge fund was unable to meet margin calls.
According to a statement from Blockchain.com, “We believe Three Arrows Capital defrauded the crypto industry and intend to hold them accountable to the fullest extent of the law.” “We have filed for the immediate liquidation of all global assets of Three Arrows.”