The crypto storm claims its first victim, a $10 billion hedge fund

“This crypto week reminds me of the 1998 LTCM crisis,” Mike Novogratz, Galaxy manager and former hedge fund Fortress trader, tweeted. The Storm is about to claim its first casualty, its institution-heavy “crypto LTCM,” in the hedge fund community. Created in 2012, the hedge fund Three Arrows Capital, based in Singapore, is no longer answerable for anything. Highly exposed on the second crypto, ether, in free fall, one of the main crypto funds is playing its survival in the coming days. He appears to confirm rumors of his $400 million position liquidations following massive losses. These forced sales in illiquid markets accentuate the plunge in prices and the rise in consumption.

The $10 billion fund was set up by Su Zhu, a former trader at Deutsche Bank and high-frequency trading firm Flow Traders and Kyles Davies, a former Credit Suisse trader. These former comrades from Columbia University had started trading emerging currencies before focusing exclusively on cryptos from 2018 with nearly fifty people.

Leave a Comment