British Virgin Island Court Orders the Liquidation of Three Arrows Capital

Earlier this week, a Court from the British Virgin Islands ordered liquidation of Three Arrows Capital (3AC), a crypto hedge fund that was in trouble. The firm had proven beyond doubt that it could not meet its debt obligations.

As reported Sky News reports that Teneo, a British Virgin Islands-based company, has been selected to handle liquidations. Sources close to liquidations claim that Teneo is at the beginning of the process and trying to find out what assets 3AC may have.

Sources who requested anonymity because the details have not been made public stated that Teneo would set up a website to provide instructions for creditors on how they can file claims for refunds. It is not known how long the refund process could take or if every creditor will receive their full amount.

Three Arrows Capital received a Voyager Digital notification of default for $350 Million in US Dollar-pegged stablecoin USDC. Three Arrows Capital also received $15250 Bitcoin. The total value of Three Arrows Capital is approximately $306 Million based upon the current Bitcoin price of $20.066.55 as of the writing. according Data from CoinMarketCap.

Three Arrows Capital’s liquidation has caused a lot of distress for the digital currency ecosystem. But, only a handful other crypto-focused platforms are also experiencing a serious liquidity crisis. BlockFi was close to insolvency, with a $250 million recent transaction Capital injection via FTX Derivatives ExchangeCelsius lawyers have advised the firm to file Chapter 11 bankruptcy.

This sequence of events is a reverberation after the collapses of Luna Classic (LUNC), as well as the Terraform Labs supported algorithmic stablecoin USTC. 3AC was reported as having deep exposure to these tokens. Their collapse may have contributed towards the rapid fall of the hedge fund.

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