A British Virgin Islands (BVI) court ordered the cryptocurrency hedge fund Three Arrows Capital to liquidate assets. According to a report by the channel Sky News, a person close to the subject said that advisory firm Teneo will handle the insolvency of the 3AC.
It means that the company is required to be closed or deregistered as it can’t pay its debts. Three Arrows Capital was founded by Su Zhu and Kyle Davies in 2012. It is headquartered in Singapore but incorporated in BVI.
Among other companies, 3AC was greatly impacted by the current crypto winter. Earlier this month it became known that the hedge fund considers selling assets, finding itself in a crisis, and not being able to meet lender demands of margin calls. Crypto lenders BlockFi and Genesis liquidated some of the company's positions.
On June 27, cryptocurrency brokerage company Voyager released a default notice to 3AC for failing to make payments. Voyager said it plans to seek recovery and is in talks with the company's advisors for judicial remedy.