Three Arrows Capital Receives Liquidation Order from a British Virgin Islands Court
Summary:
- The crypto hedge fund known as Three Arrows Capital has been ordered into liquidation by a British Virgin Island court.
- The court order was allegedly made on June 27th, less than a month after its co-founder had Tweeted that they were working things out with relevant parties.
- Teneo Restructuring has been tasked with the liquidation process.
The Singapore-based crypto hedge fund, Three Arrows Capital, founded by Su Zhu and Kyle Davies, has been ordered into liquidation by a British Virgin Island Court. 3AC is reportedly incorporated in the latter jurisdiction.
According to a report by Sky News, the liquidation order was made on the 27th of this month, less than two weeks after Su Zhu had tweeted that Three Arrows Capital was ‘in the process of communicating with relevant parties and fully committed to working this out.’ The report goes on to inform that Teneo Restructuring has been tasked with the process of the liquidation process.
At the time of writing, neither Mr Zhu nor Mr Davis has commented on the matter. In addition, no clear guidelines have been released on the liquidation proceedings by Teneo Restructuring.
Teneo Will Handle Sales of Three Arrows Capital, including Token holdings — Bloomberg.
But according to Bloomberg, a website will be set up to collect information from creditors on debts owed by the 3AC. The firm will also oversee the distribution of assets which will involve talking to potential buyers of Three Arrows Capital’s remaining assets, including tokens and equity in crypto startups.
A Brief History of Three Arrows Capital’s Woes.
Three Arrows Capital has made crypto headlines in the past few weeks for failing to meet margin calls on their various Bitcoin and Ethereum trading positions.
Known crypto service providers who liquidated Three Arrows Capital include BlockFi, Genesis, and the Bitmex crypto exchange.
In addition, the crypto exchange Deribit has openly stated that it had some significant exposure to Three Arrows Capital. However, the magnitude of the financial deficit at Deribit is not to the level of hindering operations at the crypto exchange.
Another platform affected by Three Arrows Capital’s insolvency is Voyager Digital. The firm has disclosed a significant exposure to 3AC of $650 million. Consequently, the team at Voyager Digital has served Three Arrows Capital a default notice on the stated amount, comprising 15,250 Bitcoin and $350 million USDC.
Sam Bankman-Fried’s FTX has since offered a lifeline for BlockFi and Voyager Digital in the form of a $250 million credit line and a $485 million loan, respectively.
~ By John P Njui ~
