Crypto Firm Three Arrows Capital Allegedly Ordered to be Liquidated

Paigambar Mohan Raj
Source: TechnoPixel

As per a recent report by Sky News, a British Virgin Islands court has ordered the liquidation of crypto lending firm Three Arrows Capital (3AC). The court filing for the same was made on the 27th of June. As per the report, the insolvency of the Singapore-based company will be handled by partners from Teneo Restructuring.

Insiders predicted on Wednesday that the liquidation would mark a turning point in the crypto industry’s ongoing disintegration, which has been accelerating recently.

Recently, Voyager Digital sent a default notice to Three Arrows Capital as well. The notification relates to a $650 million debt that has not been repaid.

According to the official announcement, 3AC owes Voyager Digital 15,250 BTC (Bitcoins valued at $325 million) and 350 USDC. According to Voyager Digital, the company is still operating. The company is still completing orders and withdrawals from customers. In contrast, some other cryptocurrency exchanges had to halt withdrawals after exposure to 3AC.

Voyager revealed that it had accessed a $75 million credit line, set up by Alameda Research.

End of the line for the crypto lending firm?

Kyle Davies, a co-founder of Three Arrows Capital (3AC), met with Wall Street Journal (WSJ) and discussed the company’s short-term goals in the wake of its most recent mishap.

Davies said that Three Arrows Capital has hired legal and financial advisers to assist find a solution for its investors and lenders after suffering large losses as a result of a global market selloff in crypto assets.

Davies claimed that Three Arrows Capital is investigating options, including asset sales and being saved by another company. The fund tries to strike a deal with its creditors to buy more time to come up with a plan. The business is still running while searching for a solution.

However, in light of recent news, it appears that it could be the end for the Singapore-based company. We will have more updates on this development as it unfolds.