Three Arrows Capital (3AC)is a popular crypto hedge fund that has suffered heavy losses lately and is allegedly on the verge of liquidation because of an order from a court in the British Virgin Islands (BVI)
Sky News has reported that a Court in BVI ordered 3AC to liquidate itself on June 27. The report also stated that partners from Teneo Restructuring are going to handle insolvency.
Voyager Digital, a crypto broker stated that they have issued a notice of default to 3AC. This is due to the fact that the company failed to make payments on an approximately $675 million loan.
The brokerage requested payment of $25 million in USDC from 3AC on June 24 and the entire amount on June 27. However, the hedge fund failed to meet the deadline.
3AC has suffered heavy losses majorly due to the sharp downfall in crypto markets lately. Moreover, the prospect of insolvency started picking up after the fund incurred at least $400 million in liquidations.
Also, the Wall Street Journal reported that 3AC had invested $200 million in the LUNA token. The latter was met with the unfortunate fate of almost wiping itself out of the market. Besides this, one of the company’s founders Kyle Davies talked with the Journal that the company is exploring options including a bailout by another firm.
Crypto Market started facing turmoil earlier this month after the concern of recession went up. Following that, the market saw a big selloff which further accelerated when major crypto lender Celsius announced it had suspended all withdrawals.