Crypto Collapse: Hedge fund defaults on a $670 million loan

As Bitcoin, Ether and other cryptos continue to languish 50% below record price, another blow comes to the Crypto universe as prominent hedge fund Three Arrows Capital (3AC) defaulted on a loan worth over $670 million.

Digital asset brokerage Voyager Digital issued a notice , stating that the fund failed to repay a loan of $350 million in the U.S. dollar-pegged stablecoin, as well as defaulted on a bitcoin loan worth about $323 million.

As per reports 3AC is one of the biggest crypto-focused hedge funds, has borrowed large sums of money from various companies and invested across a number of different digital asset projects.

And as the crypto winter sets in further industry watchers are worried of a domino effect of defaults from other digital token backers.The overall crypto market cap is down over $2 trillion dollars at about $950 billion vs its $3 billion peak in November.