Three Arrows Capital ordered into liquidation by the BVI court: report

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  • Three Arrows Capital must now officially liquidate assets linked to its British Virgin Islands company, according to Sky News
  • It is not immediately clear what assets Three Arrows Capital still owns or what this means for its creditors.

Crippled cryptocurrency hedge fund firm Three Arrows Capital (3AC) has been ordered into liquidation by a court in the British Virgin Islands (BVI), reports Sky News citing a source familiar with the matter.

A BVI court reportedly ordered 3AC to liquidate its assets on Monday. Partners from global consultancy Teneo Restructuring reportedly handled 3AC’s insolvency. 3AC is headquartered in Singapore but is incorporated in BVI.

In these circumstances, restructuring units such as Teneo focus primarily on protecting the assets of the liquidated company, as well as determining its creditors.

Two Teneo agents have been appointed to lead 3AC’s liquidation process, Blockworks has learned. Teneo will now set up a website through which creditors can make claims against 3AC, according to a source familiar with the matter.

The company was founded in 2012 by cryptocurrency investors Su Zhu and Kyle Davies. 3AC operated crypto hedge funds and served as venture capitalists in the digital asset space.

3AC has been dogged by insolvency rumors in recent weeks, including that it suffered over $400 million in liquidations as cryptocurrency markets crashed between May and June.

The Blockchain Kyber Network project, in which 3AC had invested, later detailed the company’s cash management services, which involved entrusting some of its capital to 3AC for potential profit. These funds are still not accounted for.

Blockworks reported similar cases affecting decentralized protocols in the cryptocurrency industry. 3AC offered its backed startups an 8% annualized return on the treasury assets it managed.

Around the same time, the managing director of trading firm 8 Blocks Capital claimed that 3AC had embezzled $1 million of its funds.

But the full extent of 3AC’s financial difficulties was confirmed last week when digital asset manager Voyager Digital revealed that 3AC had failed to make payments on loans consisting of $350 million in USDC and 15 250 BTC ($306 million).

Voyager Digital issued 3AC a notice of default on Monday — the same day a BVI court ordered the company liquidated.

Additional reporting by Sebastian Sinclair.


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  • David Canellis

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    David Canellis is an Amsterdam-based editor and journalist who has covered the crypto industry full-time since 2018. He has a strong focus on data-driven reporting to identify and map trends within the ecosystem, from bitcoin to DeFi, from crypto stocks to NFTs and beyond. Contact David by email at [email protected]

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