Cryptocurrency hedge fund Three Arrows Capital dives into liquidation | Business newsletter
Three Arrows Capital, a crypto-focused hedge fund, has plunged into liquidation, deepening the crisis that is engulfing the global digital asset sector.
Sky News has learned that partners from Teneo in the British Virgin Islands have been arranged to handle the insolvency of the Singapore-based company, founded in 2012 by Su Zhu and Kyle Davies.
Cryptocurrency insiders said on Wednesday that the liquidation will be a pivotal moment in the current unraveling of the crypto sector, which has grown at breakneck speed in recent years. recent years.
It’s unclear what the immediate financial implications will be for Three Arrows’ creditors.
However, the company’s demise will likely raise further questions about the regulatory scrutiny of cryptocurrencies and other digital assets that are subject to major financial centers around the world.
The crisis at Three Arrows Capital was highlighted earlier this month when Voyager Digital, a cryptocurrency broker, said it was considering issuing a default notice regarding a loan worth hundreds of millions dollars.
The crypto landscape is undergoing tumultuous change as the valuation of assets such as stablecoins – digital currencies pegged to the value of assets like the US dollar or gold – collapses.
Davies told the Wall Street Journal in an interview this month that they are “committed to getting things right and finding a solution that’s fair to all of our voters.”
He added that Three Arrows is exploring options such as selling the property or having it bailed out by another company.
It is unclear whether such conversations will continue on Wednesday or whether some form of sale of Three Arrows assets by its liquidators is still possible.
A person familiar with the situation confirmed that a court order at the BVI was issued on June 27 to liquidate the Three Arrows.
Three Arrows Capital did not respond to an email request for comment, while Teneo has been contacted for comment.
