- Teneo Restructuring will provide assistance in the process.
- Crypto broker Voyager Digital also revealed $661 million in exposure to the fund.
According to Sky News, a court in the British Virgin Islands has ordered the liquidation of the Singapore-based crypto firm Three Arrows Capital (3AC). Teneo Restructuring, according to the news organization, will provide assistance in the process. In the wake of the recent crypto market meltdown, 3AC, headed by Kyle Davies and Su Zhu, has been the subject of much interest. In May, Terra and its algorithmic stablecoin UST crumbled, igniting concerns of the fund’s demise.
Huge Setback For Crypto Sector
On Wednesday, insiders said the liquidation would signal a turning point in the crypto industry’s recent breakdown. When Three Arrows Capital (3AC) had its most recent setback, co-founder Kyle Davies spoke with the Wall Street Journal (WSJ) to address the company’s short-term ambitions.
It has been revealed by Davies that Three Arrows Capital has employed legal and financial advisors to help find a solution for its investors and lenders after the worldwide market selloff in crypto assets.
Following the project’s failure, 3AC was left with an approximately $200 million loss, with Davies telling the Wall Street Journal that “the Terra-Luna situation caught us very much off guard.” Markets continued to fall, and 3AC’s investments in BitMEX, FTX, and Deribit were all liquidated when they failed to fulfil margin requirements.
Crypto broker Voyager Digital also revealed $661 million in exposure to the fund, adding to the growing list of open holdings. There were 15,250 Bitcoins and $350 million in the stablecoin USDC used to make the loan. Voyager issued a notice of default on Monday after 3AC failed to pay even partial payments.
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