Arrows Receive the Liquidation Statement

A British Virgin Islands court has ordered that the Three Arrows Capital firm be liquidated. The company, which staked in everything from BTC to the dammed Luna tokens, collapsed to a wipeout estimated at around $2 trillion (£1.6 trillion) of the digital asset market.

The court made the order on 27th June and appointed a couple of partners at a consulting company in Teneo, whom it entrusted with liquidating the Three Arrows Capital. This information was released by an anonymous informer who wished his identity to remain confidential.

The anonymous tipster wants to say that from now on, Teneo will be in charge of discussing the sale of what remained of Three Arrows holdings. It is reported that Teneo will create a creditor website to establish who and how much the company owes. Three Arrows Capital had several investments in several DeFi platforms such as dYdX and Aave.

In addition, the company also has investments in crypto infrastructure in Skyware. At the moment, it has not been revealed how many buildings are up for sale. This court order is the one that has liquidated the most known hedge fund, established by Kyle Davies and her counterpart Zhu Su in 2012. One of the factors that made their fortunes escalate was the cryptocurrency bull run. Around March, the total assets of Three Arrows Capital were estimated to be worth around $10 billion. This report was released by Nansen, which is a blockchain analytics firm. Zhu announced in April that they would move the firm’s HQ from Singapore to Dubai in the middle east.

One of the founders of Messari Inc.-Ryan, Selkis, feels that with the liquidation of the Three Arrows Capital, a complication will likely occur in the policy efforts and the current arrangement in the cryptocurrency industry in DC. Messari Inc is one of the firms that provide data, research, and analysis of crypto. Ryan continued to add that most of the centralised organisation heads in the space adopted weak and old-fashioned risk controls, which was a threat to their customers’ funds.

The liquidation of Three Arrows Capital is among the cries that continue to echo throughout the crypto market, which has been battered by disaster since the start of the year. Other cries include the liquidity problems haunting lenders such as Celsius and Babel Finance. One firm directly hit by the current state of Three Arrows is Voyager Digital. Recently Voyager Digital announced that it had given Three Arrows a notice of default after the company failed to repay its $675 million (£570 million) loans.

Before the liquidation of Three Arrows, lenders such as BlockFi and Genesis, a brokerage firm, released a report saying that they had been forced by the current situation to liquidate one of their counterparties. However, the two companies did not mention the counterparty that had been liquidated.

The funds of the liquated company are incorporated in the courts of the British Virgin Islands. There, a court has the right to liquated a company if it becomes insolvent, thus incapable of paying off its lenders. There is also an option where a company chooses to liquated voluntarily. However, that scenario is infrequent.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.