British Virgin Islands Orders the Liquidation of Three Arrows Capital
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A person familiar with the situation told the publication that a court order from the British Virgin Islands had been made on June 27 to liquidate Three Arrows. Partners from Teneo Restructuring in the British Virgin Islands have been called upon to handle the insolvency of the Singapore-based firm.
The report added that the liquidation could be a key moment for the prospects of the rapidly growing cryptocurrency sector. However, it remains unclear as to what the immediate financial implications would be for Three Arrows' creditors.
Insolvency Could Affect the Crypto Sector
The crisis at Three Arrows Capital was highlighted earlier this month when Voyager Digital, a crypto broker, said it was considering issuing a default notice. The firm said one of its units had issued the crypto hedge fund with a default notice for its inability to repay a loan. The loan amount includes 15,250 Bitcoin and $350 million in USDC, worth around $660 million.
The insolvency process is likely to affect the crypto space, which is already reeling from losses amid the crypto winter. Three Arrows Capital, meanwhile, acquired loans from several lenders including Celsius, FTX, BlockFi, BitMEX, and Nexo.