India’s stand of not promoting cryptocurrencies is being proved right by the negative experience of many crypto funds. Experts say that India had correctly predicted adverse economic conditions and this may have saved many people from suffering.
Last week there were reports of Singapore-based crypto hedge fund Three Arrows Capital facing financial difficulties. The value of this fund has almost come down significantly from the peak in November last year. This is a big sign of bad conditions in the crypto market. A Reuters report quoted sources as saying it was being liquidated after failing to pay off a loan of about 15,250 bitcoins and about $350 million worth of stablecoin USDC. A court in the British Virgin Islands ordered its liquidation late last month.
blockchain Analytics firm Nansen has reported that Three Arrows Capital’s blockchain holdings once stood at around $10 billion. The Central Bank of Singapore and the Monetary Authority of Singapore (MAS) regulations The fund was reprimanded last week for violating the The hedge fund had given false information about its relocation to the British Virgin Islands last year. However, no penalty has been levied on it. The queries sent in this regard have not received any reply from the firm. MAS said that the firm has delayed in informing about the changes in the directors and their shareholding. Apart from this, in the last two years, it had also crossed its limit of assets under management.
Crypto brokerage firm Voyager Digital had given a default notice to Three Arrows Capital for its failure to repay the loan. Consultancy firm Teneo has been appointed as the liquidator. The value of Bitcoin, the largest cryptocurrency by market capitalization, declined by nearly 37 percent in June. In November last year, it touched an all-time high of around $69,000. Recently, the co-founder of the firm had said in a tweet about liquidation speculation that the firm was committed to resolve it. Due to the slowdown in the crypto market, many firms in this segment are cutting their workforce to reduce costs.
Cryptocurrency prices in Indian exchanges