S'pore-based crypto hedge fund Three Arrows Capital enters liquidation: Source
LONDON (BLOOMBERG, REUTERS) - Crypto hedge fund Three Arrows Capital (3AC) has entered liquidation, a source familiar with the matter told Reuters on Wednesday (June 30), in the latest sign of the market downturn hurting the crypto industry.
Singapore-based 3AC is one of the higher-profile crypto investors to have run into difficulties following the sharp sell-off in the market for digital currencies seen in recent months.
Crypto broker Voyager Digital issued 3AC with a default notice on Monday after it failed to make payments on a loan of 15,250 bitcoin (approximately US$324 million) and US$350 million worth of USDC, a stablecoin.
A court in the British Virgin Islands, where 3AC’s fund is incorporated, issued the liquidation order on Monday. The Commercial Court there orders a company to be liquidated if it is regarded as insolvent because it cannot pay its debts. Companies can also voluntarily liquidate, though that is less common.
The court has appointed two partners at consulting and advisory firm Teneo to handle the liquidation, according to a source familiar with the matter.
Teneo will oversee talks with potential buyers that may be interested in 3AC’s remaining holdings, such as tokens or equity stakes in crypto start-ups, the source added.
A website will be set up to locate creditors and determine who is owed what. 3AC has invested in a range of decentralised finance platforms such as Aave and dYdX, as well as crypto infrastructure firms such as StarkWare, according to its website. It is not immediately clear what or how much of these holdings will be subject to a sale.
Auto, H. (2022c, June 30). S'pore-based crypto hedge fund Three Arrows Capital enters liquidation: Source. The Straits Times. https://www.straitstimes.com/business/banking/spore-based-crypto-hedge-fund-three-arrows-capital-in-liquidation-source