According to a recent report from Sky News citing a source familiar with the matter, “cryptocurrency insiders” have said that the troubled crypto hedge fund Three Arrows Capital (3AC) has been formally liquidated by a British Virgin Islands (BVI) court. The report does not disclose what type of assets face liquidation, but the sources remarked that “the [3AC] liquidation would be a significant moment in the current unraveling of the cryptocurrency sector.”
3AC Reportedly Liquidated by British Virgin Islands Court System — Reporter Says Immediate Financial Implications Are ‘Unclear’
Another source has provided information about a troubled digital currency business that faces financial hardships. Sky News has learned that Three Arrows Capital Ltd. had been officially declared bankrupt by a British Virgin Islands Court. Sky News author Mark Kleinman details that it is “unclear what the immediate financial implications would be for Three Arrows’ creditors.” Bitcoin.com News reported on the crypto hedge fund’s initial troubles two weeks ago when The Block’s Frank Chaparro cited sources that said 3AC may have been liquidated for roughly $400 million.
3AC’s two founders, Su Zhu and Kyle DaviesThe company was founded by Zhu in 2012. Davies and Zhu became quiet socially when insolvency stories began. Zhu, however, did tweet on June 14, that 3AC was “in the process of communicating with relevant parties and fully committed to working this out.” Allegedly, 3AC has significant exposure to Terra’s LUNC token and it has been said that 3AC’s stash of roughly $200 million in locked luna classic (LUNC) evaporated into less than a thousand dollars.
Kleinman reported, on June 29, that 3AC assets were officially liquidated in the British Virgin Islands (BVI). The report says that the news outlet had learned that “partners from Teneo in the British Virgin Islands has been lined up to handle the insolvency of the Singapore-based firm.” Kleinman further detailed that the BVI court order news stemmed from a “person familiar with the situation” and the order was filed on June 27. Furthermore, the journalist reached out to 3AC for a comment about the court’s alleged liquidation order and the company did not respond.
How do you feel about the BVI court’s decision to liquidate 3AC? Comment below and let us know how you feel about the subject.
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