Three Arrows Capital Founders Say Terra, GBTC Trades Led to Fund Blowup: Report

3AC continued to borrow from lenders expecting a market rebound. This was until bitcoin (BTC) fell to nearly $20,000 in late June, causing the firm’s positions to go awry and making it unable to repay any loans. The fund lost money on luna, its GBTC shares traded at a discount, and overall market declines meant all altcoin token holdings fell drastically in value.