Following insolvency, a British Virgin Islands court ordered the liquidation of the assets of crypto hedge fund Three Arrows Capital.
On June 29, the British newspaper Sky News reported that a court in the British Virgin Islands had assigned the Three Arrows Capital case to Teneo Restructuring, a corporate asset restructuring unit. inability to pay back debts.
It is unclear why a Caribbean court would have jurisdiction over a Singapore-based investment firm.
Previously, Voyager Digital revealed that Three Arrows Capital owed them 15,250 BTC and 350 million USDC, totaling more than 672 million USD, but failed to respond to a payment request with a June 27 deadline. As a result, Voyager has declared Three Arrows Capital insolvent and will pursue legal action to recover the assets.
Three Arrows Capital is a well-known crypto hedge fund, but it suffered significant losses following the May collapse of LUNA-UST, which was followed by massive asset liquidation as the market continued to correct in June. This fund was discovered to have borrowed unsecured assets from a number of other units, causing a widespread ripple effect.
Kyle Davies and Su Zhu, the fund’s two founders, have only issued one official statement since the beginning of June, confirming the company is experiencing liquidity issues and will try to find the best way to deal with them. including the possibility of liquidating assets. This statement was made on June 17, and Three Arrows Capital has not provided any further updates since then.
Summited by HotQA