Hedge-fund giant, SAC Capital Advisors is expecting its investors to pull out a whopping $3.5 billion from the firm, which could severely affect its market value, over a continuing insider trading probe in the company, according to people closer to the matter.

The company believes that the figure of $3.5 billion is just a preliminary number and the withdrawal could be much higher. The deadline for the clients to demand their money back form the company is on Monday. The hedge fund has received withdrawal requests for about $1.7 billion during the first quarter of the year.

Estimates shows that the withdrawals could rise to about half of the firm's remaining outside capital and increase the total withdrawal request to more than $5 billion. The firm, which was founded by highly regarded investor, Steven A. Cohen, has been returning gains from the previous 20 years. It is believed that the government investigation is having an impact on the company’s reputation and investor confidence in the company.

Most of the company’s $14 billion in assets belong to Cohen or the employees of the firm. Mr. Cohen and other SAC executives might also consider turning the company into a family office that would only look after a wealthy family's money and not cater to external clients.