A British Virgin Islands Court order ostensibly requests the crypto hedge fund wind up its activities after being sued by creditors.
A wide number of international media reported on the apparent imminent demise of Singapore-based Three Arrows Capital overnight, with many alleging a British Virgin Islands court had requested it liquidate its assets after being sued by creditors. A review of the government branch website did not have further information on the matter.
The step, if confirmed, would be another negative milestone for the embattled cryptocurrency and digital asset markets, many of which have experienced significant price declines recently following years of strong growth.
«sky news», a UK-based news broadcaster, indicated that partners from Teneo had been directed to handle the insolvency, adding that it was unclear what the financial implications were for creditors.
Seeking Legal Advice
The «Wall Street Journal» (paywall) reported that Three Arrows Capital was considering options and seeking advice in the British Virgin Islands, citing Nichol Yeo, a partner at the Solitaire law firm.
The newspaper also seemed to confirm some of the information provided by «sky», saying that two executives from Teneo had been appointed by the island government to oversee the liquidation and safeguarding of the assets. The publication cited people who were familiar with the ongoing proceedings.
The Wall Street Journal also indicated the same sources believe that Three Arrows creditors will be able to file their claims online, although the process is likely to be lengthy, with the court liquidation order only marking the start. The newspaper reported that DRB Panama, which operates the Deribit crypto exchange, had sued Three Arrow Capital for debt owed after liquidating its position on the exchange following a breach of margin and equity requirements. Three Arrows co-founder Su Zhu is also apparently a creditor, it said.
