Three Arrows Capital Ordered Into Liquidation Due to Its Inability to Pay Off Debt

    On June 29, Sky News reported that a court in British Virgin Islands ordered Teneo Restructuring, an advisory firm, to handle the liquidation of Three Arrows Capital. It remains unclear why a Caribbean court would have jurisdiction over an investment firm based in Singapore.

    Voyager Digital previously revealed that Three Arrows Capital owed them 15,250 BTC and 350 million USDC, equivalent to more than 672 million USD. Voyager Digital also requested Three Arrows Capital repayment of $25 million USDC by June 24, and repayment of the entire balance of USDC and BTC by June 27 but the crypto hedge fund failed to repay its loans. Voyager then declared that 3AC has defaulted and they will take the necessary legal action to recover their assets.

    Three Arrows Capital is a well-known crypto hedge fund, but suffered heavy losses after the collapse of LUNA-UST in May and the liquidity crisis in June. The two founders of the fund, Kyle Davies and Su Zhu, have released only one official statement since the beginning of June, confirming the fund is facing difficulties in liquidity and will try to find the best way to handle it, including selling off their assets. This statement was made on June 17, and since then 3AC has not provided any further updates.

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