Do repost and rate:
Jamie Crawley
Jamie Crawley is a CoinDesk news reporter based in London.
The liquidation of crypto hedge fund Three Arrows Capital (3AC) has been ordered by a British Virgin Islands (BVI) court, a person with knowledge of the the situation told CoinDesk.
- The court order was made on June 27.
- Partners from New York-based Teneo Restructuring have been called in to handle the insolvency, the person said.
- Three Arrows Capital, founded by Su Zhu and Kyle Davies in 2012, has suffered heavy losses in the recent sharp downturn in the crypto markets. The possibility of insolvency was reported in mid-June after it incurred at least $400 million in liquidations.
- Crypto brokerage Voyager Digital (VOYG.TO) issued a default notice to 3AC this week after the fund failed to make required payments on loans of 15,250 bitcoins and $350 million in USDC. Voyager's shares had plunged after it disclosed its exposure to 3AC.
- 3AC has been an active investor in the digital asset industry in recent years with investments across non-fungible tokens (NFTs), decentralized finance (DeFi), layer 1 blockchain firms and crypto companies.
- Teneo declined to comment. 3AC did not immediately respond to CoinDesk's request for comment.
- The court order and Teneo's role was reported earlier by Sky News.
UPDATE (June 29, 11:54 UTC): Changes sourcing; adds founding, Voyager Digital default notice.
