Crypto exchanges and Deribit were among the creditors to have pushed for the liquidation of troubled hedge fund Three Arrows Capital (3AC), Bloomberg reported on Friday. has also said it is cooperating with ongoing investigations into the hedge fund, which “defrauded the crypto industry,” the report said, citing a spokesperson.

The liquidation of 3AC was ordered in a British Virgin Islands court earlier this week. New York-based Teneo Restructuring was called in to work with creditors and handle the insolvency.

3AC suffered heavy losses in the recent crash in the crypto markets, with the possibility of insolvency reported in mid-June after the firm incurred at least $400 million in liquidations.

Crypto derivatives exchange Deribit was among those to liquidate 3AC’s capital positions after the hedge fund failed to meet margin calls.

“We believe Three Arrows Capital defrauded the crypto industry and intend to hold them accountable to the fullest extent of the law,” a spokesperson said in a statement, according to Bloomberg’s report. “We have filed for the immediate liquidation of all global assets of Three Arrows.”, Deribit and 3AC did not immediately respond to CoinDesk’s request for comment.


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