The British Virgin Islands court ordered the liquidation of hedge fund Three Arrows Capital (3AC). This is reported sky news with reference to informed sources.
According to them, the partners of the consulting company Teneo Restructuring were involved in the consideration of the insolvency case of the organization. 3AC has not yet commented on the information.
According to open data, Three Arrows Capital, Ltd is registered in the Virgin Islands. Singapore is listed as the headquarters address.
In May 2022, 3AC co-founder Su Zhu announced that the foundation plans to move its headquarters to Dubai. Among the reasons, he cited a more favorable regulatory environment.
However, in June the representative DFSA announced that the hedge fund did not have a license to operate in the emirate.
In June, against the background of the collapse of the cryptocurrency market, rumors about the insolvency of Three Arrows Capital appeared. Trading company 8 Blocks Capital accused the hedge fund of using client funds to cover margin calls.
According to some reports, cryptocurrency platforms BitMEX, FTX and Deribit liquidated 3AC positions due to the latter’s inability to meet margin requirements.
On June 17, hedge fund co-founder Kyle Davis said Three Arrows Capital had hired legal and financial advisors to work out a solution for its investors and lenders.
On June 27, crypto broker Voyager Digital sent 3AC a notice of default due to non-payment of a loan.
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