3AC borrowed recklessly from just about every institutional lender in the business, FSInsight’s report said. : FSInsight didn't mince words when it came to characterizing 3AC's activities. (Credit: Shutterstock/RikoBest) The crypto industry was “brought to its knees” in recent weeks by an “old-fashioned Madoff-style Ponzi scheme” wrapped in a trade that was similar to the positions that sunk Long Term Capital Management (LTCM),” research firm FSInsight said in a report Friday looking at the implications of the implosion of cryptocurrency hedge fund Three Arrows Capital (3AC).