Teneo Restructuring has been brought on board in the last few days to deal with the liquidation process.

Major cryptocurrency hedge fund Three Arrows Capital has fallen into liquidation marking one of the biggest casualties of the latest so-called “crypto winter.”

Teneo is in the very early stages of the liquidation process, the spokesperson who remained anonymous said.

The restructuring firm is taking steps to realize the assets 3AC has, then it will set up a website in the next day or two with instructions for how creditors can get in touch to make any claims, the source added.

Three Arrows Capital is one of the most prominent crypto hedge funds around and is known for its highly leveraged bets.

Zhu has very bullish views on bitcoin.

Crypto has seen billions of dollars wiped off the market in recent weeks, has hurt 3AC, and exposed a liquidity crisis at the company.

On Monday, 3AC defaulted on a loan from Voyager Digital made up of $350 million in the U.S. dollar-pegged stablecoin, USDC, and 15,250 bitcoin, worth about $304.5 million at today’s prices.

3AC had exposure to the collapsed algorithmic stablecoin terraUSD and sister token luna.

The Financial Times reported earlier this month that U.S.-based crypto lenders BlockFi and Genesis liquidated some of 3AC’s positions, citing people familiar with the matter. 3AC had borrowed from BlockFi but was unable to meet the margin call.

A margin call is a situation in which an investor has to commit more funds to avoid losses on a trade made with borrowed cash.

The unwinding of 3AC has sparked contagion fears to parts of the market that could potentially be exposed to the company.

Other cryptocurrency companies have also faced liquidity issues. Lending firm Celsius and cryptocurrency exchange CoinFlex were forced to pause withdrawals for customers both citing “extreme market conditions.”

CoinFlex had another issue with a customer who failed to repay a $47 million debt, creating a liquidity problem for the company.

Three Arrows Capital has defaulted on a loan worth more than $670 million.

Digital asset brokerage Voyager Digital issued a notice on Monday, stating that the fund failed to repay a loan of $350 million in the U.S. dollar-pegged stablecoin, USDC, and an additional 15,250 bitcoin, which is worth about $323 million at today’s prices.

Three Arrows Capital, also known as “3AC,”  did not respond to a request for comment.

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