A British Virgin Islands court ordered the liquidation of Three Arrows Capital Ltd (3AC). after creditors sued the crypto hedge fund for failure to repay debts, WSJ reports. Three Arrows Capital suffered losses in recent weeks due to collapsing crypto prices. Bitcoin’s dollar value has fallen by more than a third this month. Former Wall Street traders Zhu Su and Kyle Davies started the crypto hedge fund nearly a decade ago. It had roughly $3 billion in assets under management in April, just before crypto markets cratered.
Creditors to whom Three Arrows Capital (www.threearrowscapital.com) owes debts will be able to file their claims online, the people said. However, the process for debtors to reclaim their assets is likely to be lengthy.
Several creditors have sued over the firm’s failure to repay loans. DRB Panama Inc., the operator of crypto exchange Deribit, sued Three Arrows Capital for debts owed. Crypto broker Voyager Digital Ltd. claims that Three Arrows had defaulted for failing to make loan payments tied to large bets in the digital-currency realm. The loan, which included 15,250 bitcoin, amounted to about $656 million based on bitcoin’s current price. Voyager Digital said it intends to recover its assets and is discussing legal remedies with its advisers.
Three Arrows Capital operated as a regulated fund manager in Singapore until last year when it moved its domicile to the British Virgin Islands, as part of a plan to relocate its operations to Dubai.
