Three Arrows Capital’s liquidation has been ordered by a court.
According to a report from Sky News, Three Arrows Capital, a hedge fund mostly concentrated on cryptocurrencies, has declared bankruptcy, further exacerbating the crisis sweeping the global digital assets market.
Sky News writes:
“A court in the British Virgin Islands has ordered the liquidation of Singapore-based Three Arrows Capital, underlining the crisis gripping the cryptocurrency sector.”
The company’s bankruptcy in Singapore, established in 2012 by Su Zhu and Kyle Davies, will be managed by partners from Teneo Restructuring in the British Virgin Islands, who has been lined up to take on the task.
This claim comes only a few days after Voyager Digital began making good on its pledge to hunt after crypto hedge fund Three Arrows Capital (3AC) for owing money after the crypto broker was said to have given 3AC $350 million in the stablecoin USDC and 15,250 Bitcoin, which totals over $650 million at today’s rates.
The demise of 3AC would surely raise concerns about the regulatory framework for the crypto world to avoid incidents like Terra and 3AC.
In related news, Voyager said on the 22nd that it has submitted an application for partial repayment of $25 million USDC by the 24th. In addition, it said that it requested complete payback by the 27th of June; however, it seems that none of these demands has been honored, which led to the issuance of the default notice and strengthened accusations that 3AC is bankrupt.
It was not obvious what the immediate repercussions would be for the creditors of Three Arrows from a financial standpoint.
However, as a result of the company’s bankruptcy, further concerns are likely to be raised regarding the regulatory monitoring that cryptocurrencies and other forms of digital assets are subject to in the most important financial centers across the globe.
In addition, a research company known as FSInsight said on Friday in a study that examined the repercussions of the failure of the cryptocurrency hedge fund known as Three Arrows Capital that the cryptocurrency hedge fund was operating as a ponzi scam.