A court based in the British Virgin Islands has ordered the liquidation of embattled hedge fund Three Arrows Capital, Sky News reports.
The collapse of one of the most significant cryptocurrency companies could exacerbate the pain already being felt by the industry, which is still trying to recover after a run of unfavorable news.
A cryptocurrency-focused hedge firm called Three Arrows Capital has entered liquidation, worsening the crisis gripping the whole world’s market for digital assets.
According to information obtained by Sky News, partners from Teneo in the British Virgin Islands have been lined up to handle the bankruptcy of the Singapore-based company that Su Zhu and Kyle Davies founded in 2012.
Insiders in the cryptocurrency industry predicted on Wednesday that the liquidation would mark a turning point in the industry’s ongoing disintegration. The cryptocurrency market has expanded rapidly over the past few years.
What the immediate financial repercussions would be for the creditors of Three Arrows were unknown.
Early in June, rumors about Three Arrows Capital’s bankruptcy first surfaced
The demise of Terra and the accompanying market congation have had a devastating impact on the once-dominant hedge fund.
Mr Davies told the Wall Street Journal in an interview this month that it was “committed to working things out and finding an equitable solution for all our constituents”.
He continued by saying that Three Arrows was looking into possibilities including asset sales and company rescues.
On Wednesday, it was unclear if these discussions were still taking place or if Three Arrows’ liquidators may still sell some of its assets.
A person with knowledge of the incident stated that on June 27, a court in the British Virgin Islands issued an order liquidating Three Arrows.
While Teneo was contacted for comment, Three Arrows Capital did not respond to an email request for comment.
Currently, the price of bitcoin is little above $20,000.
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