Court Orders Three Arrows Capital to Liquidate Assets: Sky News
The revelation comes less than two weeks after the hedge fund said it was committed to working things out with its creditors.
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A court in the British Virgin Islands has ordered the liquidation of crypto hedge fund Three Arrows Capital, Sky News has reported.
Three Arrows Capital Reportedly Facing Liquidation
Three Arrows Capital has reportedly been ordered to liquidate its assets.
The troubled crypto hedge fund co-founded by Su Zhu and Kyle Davies has been ordered to liquidate its holdings by a court in the British Virgin Islands, a Sky News report citing an unnamed source has said. According to the report, the Singapore-based hedge fund will work with the British Virgin Islands-based Teneo Restructuring Limited to handle its insolvency. While the details of Three Arrows’ liquidation are not publicly available, the restructuring will likely involve disposing of the firm’s assets to help repay its creditors.
In a Wall Street Journal interview published on Jun. 17, Davies told the publication that his firm was “committed to working things out and finding an equitable solution for all our constituent.” Since then, the crypto exchange Voyager Digital confirmed that Three Arrows had defaulted on approximately $665 million worth of loans, causing the company’s stock to plummet over 66% since the news dropped.
Rumors of Three Arrows Capital’s insolvency started circulating earlier this month as the crypto market plunged to its lowest levels in over 18 months. It was widely reported that the firm had taken out multiple loans to go long on crypto assets such as Bitcoin and Ethereum and faced margin calls from several creditors as the market crashed.
Three Arrows Capital had not responded to Crypto Briefing‘s request for comment at press time.
Disclosure: At the time of writing this piece, the author owned ETH and several other cryptocurrencies.