Court rules to liquidate crypto hedge fund Three Arrows Capital

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Court of the British Virgin Islandsmade a decision based on the results of the proceedings regarding the unprofitable activities of Three Arrows Capital as a result of the recent sharp decline in the cryptocurrency markets.

The court ordered the liquidation of the crypto hedge fundThree Arrows Capital (TAC). Partners from New York-based consultancy Teneo Restructuring were called in to assist with the company's insolvency proceedings.

The question of the form of repayment of TAC's debt obligations through the sale of assets on the foreign market or acquisition remains open.

Information about the fund's possible insolvency appeared in mid-June - after the company suffered losses during the liquidation of its exchange positions worth at least $400 million.

Later cryptocurrency broker VoyagerDigital has issued a notice of default to Three Arrows Capital due to the fund's lack of financial capacity to service debt in excess of $650 million. Voyager intends to recover losses from TAC by all available means.

Another factor that influenced the decisionCourt of the British Virgin Islands, could be the indictment brought by the CEO of TAC liquidity provider 8 Blocks Capital, Danny Yuan. He stated that 8 Blocks Capital discovered that $1 million was missing from the company's funds deposited with Three Arrows Capital.

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