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The Court of Justice of the British Virgin Islands has ruled in a case involving Three Arrows Capital's loss-making operations as a result of the recent sharp downturn in the cryptocurrency markets.
The court ruled to liquidate the crypto-hedge fundThree Arrows Capital (TAC). Partners from the New York-based consulting firm Teneo Restructuring were called in to help with the company's insolvency case.
The question of the form of repayment of TAC debt obligations through the sale of assets on the external market or takeover remains open.
Information about the possible insolvency of the fund appeared in mid-June - after the company suffered losses in the liquidation of its exchange positions in the amount of at least $400 million.
Later cryptocurrency broker Voyager Digitalissued a notice of default by Three Arrows Capital due to the fund's inability to service more than $650 million in debt. Voyager intends to recover losses from TAC by all available means.
Another factor that influenced the court's decisionBritish Virgin Islands, could be the charge brought by the CEO of 8 Blocks Capital, TAC's liquidity provider, Danny Yuan. He stated that 8 Blocks Capital discovered the loss of $ 1 million from the company's funds placed with Three Arrows Capital.</p>