Three Arrows Capital (3AC), a prominent crypto hedge fund, defaulted on a loan worth over US$670 million, prompting a steep fall in Bitcoin's price to below $21,000.
The fund had failed to repay digital asset brokerage Voyager Digital after receiving a loan comprising $350 million in a USD stablecoin, a cryptocurrency pegged to the dollar, and 15,250 Bitcoins, worth a total of around $323 million.
3AC invested in various types of digital assets, including Bitcoin, Ethereum and the original Luna cryptocurrency. However, the cryptocurrency market is currently down significantly. The current overall crypto market cap fluctuates around $950 billion, a significant drop from its all-time high at $3 trillion in November of last year.
