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While the cryptocurrency market is now showing signs of recovery, one of the major hedge funds in the field is currently experiencing bankruptcy.

In the most recent development, several affidavits have made it clear how much money Three Arrows Capital (3AC) received as loans from various businesses.

Genesis to 3AC

Teneo claims that the firm entrusted with overseeing 3AC's liquidation recently made the court records, which list the firms and the entire amount Three Arrows Capital owes them, public.

A total of $3.5 billion was loaned to 3AC by the 27 entities on the list, $2.36 billion of which came from Genesis Asia Pacific Pte by itself.

Genesis CEO Michael Moro, who is a member of the Digital Currency Group (DCG), had already stated the scenario the firm was in earlier this month.

Moro claimed in a series of tweets that Three Arrows Capital's loan from Genesis was subject to an 80 percent weighted average margin requirement.

Genesis, however, swiftly liquidated the collateral and hedged their downside as it became clear that 3AC would not be able to satisfy the aforementioned margin call.

Additionally, Moro tweeted

"Genesis offers a variety of services, including as trading, lending, derivatives, and custody. We use a variety of risk management techniques to ring-fence our portfolio and make full use of our resources to swiftly and efficiently reduce losses.

Due to its recent expansion, Three Arrows Capital is now among the largest hedge funds operating in the cryptocurrency industry. However, 3AC was on the verge of disintegrating until the crash in May and June, which also destroyed the Terra ecology.

Voyager offers a little companionship

Unfortunately, Three Arrows Capital wasn't the only company to fail as a result of the market collapse; Voyager Digital also suffered comparable losses and had to declare bankruptcy earlier this month.

Voyager made this choice a week after stopping withdrawals, trading, and deposits on its platform.

Three Arrows Capital, which owes Voyager $350 million in USDC and 15,250 Bitcoin (BTC), was linked to the corporation by the fact that around 60% of its loans were made to 3AC. This also significantly contributed to Voyager Digital's demise.

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