James Atkins
Editor
Editor
In the British Virgin Islands, a court has ordered that Three Arrows Capital (3AC) be liquidated. Following Voyager Digital’s notification of default, the liquidation order arrived a few days later.
3AC, which manages about $1 billion in digital assets, has been embroiled in controversy since last month.
When it was revealed that the fund had lost around $340 million in a single day of trading. This led to many investors withdrawing their money from the fund.
In a letter to investors, 3AC said that it would not be able to meet redemptions after the Voyager default. The letter also said that the fund is in talks with potential investors to raise new capital.
Following the cryptocurrency market crisis. The Singaporean crypto hedge fund firm has been having a difficult time in recent weeks.
Its troubles started with the collapse of Terra LUNA, which started a wave that is still spreading throughout the crypto sector.
It is being said that several partners, including Teneo in the British Virgin Islands. Are getting ready to help with the insolvency of a crypto hedge fund that has been around for 10 years. The fund began operations in 2012 by Su Zhu and Kyle Davies.
Liquidation experts believe that the shutdown will have a big influence on the cryptocurrency industry. Which is presently experiencing problems due to plummeting market prices and has resulted in a volatile market.
The liquidation is also likely to cause jitters among other digital asset hedge funds and investors. As it will set a precedent for how such entities are treated by the law.
Even though the immediate financial repercussions are yet unknown. 3AC’s collapse is sure to raise more concerns about the future of cryptocurrency. And the creditors of 3AC will certainly be among the first to feel the effect.
The Three Arrows Capital liquidation case is still ongoing and the full implications are yet to be seen.
However, this is sure to be a turning point in how digital assets are treated by the law. And could have far-reaching implications for the future of the industry.
The default notification sent to the 2AC by Voyager Digital was regarding a loan worth hundreds of millions of dollars.
This is a developing story and more details will emerge in the coming days. However, it is clear that this is a major setback for the digital asset industry and could have far-reaching implications.
Digital assets are still in a nascent stage and are not yet well understood by the traditional financial world. The Three Arrows Capital liquidation case is likely to be a watershed moment for how digital assets are treated by the law.
This could have far-reaching implications for the future of the industry. Stay tuned for more updates on this developing story.
Kyle Davies, a co-founder of Three Arrows Capital and the CEO of Coinfloor. States in an interview with the Wall Street Journal earlier this month:
“We are committed to working things out and finding an equitable solution for all our constituents”.
Davies adds that the hedge fund was considering alternative methods of saving the business. Such as selling assets or being rescued by another firm.
Three Arrows Capital, one of the largest hedge funds. In the digital assets space, has been ordered by a court to liquidate its assets.
The decision was made by the Virgin Islands Grand Court after the company filed for voluntary liquidation last month.
What do you think about the court’s decision to liquidate Three Arrows Capital? Let us know in the comments below.
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
