Court orders the liquidation of Three Arrows Capital (3AC)

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Last Updated on June 29, 2022 by Bitfinsider

A British Virgin Islands court has ordered the liquidation of the troubled cryptocurrency hedge fund Three Arrows Capital (3AC). A few days after Voyager Digital sent the hedge fund company a notice of default, the liquidation order was issued.

The crisis engulfing the bitcoin industry has been difficult for the Singaporean cryptocurrency hedge fund over the past few weeks. Its problems began with Terra LUNA’s demise, which seems to have set off a chain reaction that is currently being felt throughout the cryptocurrency world.

Several partners, including Teneo in the British Virgin Islands, are reportedly lining up to manage the bankruptcy of the cryptocurrency hedge fund, which has been running for the past 10 years since its founding in 2012 by Su Zhu and Kyle Davies.

What impact would 3AC’s liquidation have on the cryptocurrency market?

Insiders in the cryptocurrency industry believe that the liquidation will significantly affect the industry, which is already struggling as a result of falling market prices, which have also made the market exceedingly unpredictable.

Even while the immediate financial repercussions are yet unknown, 3AC’s downfall is likely to raise greater concerns about the future of digital assets. And the 3AC creditors will undoubtedly be the ones that suffer first.

It should be mentioned that the 2AC received a notice of default from Voyager Digital in connection with a loan of hundreds of millions of dollars.

In an earlier interview this month with the Wall Street Journal, Kyle Davies, a co-founder of Three Arrows Capital, stated: “We are committed to working things out and finding an equitable solution for all our constituents”. Additionally, Davies also stated that the hedge fund was considering other options for saving the company, such as selling off assets or having another firm step in and save it.


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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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