Three Arrows Capital (3AC), is reportedly facing liquidation on the orders of a British Virgin Islands court, the order came on the same day Voyager Digital issued a notice of default to 3AC for its failure to pay its loan.
According to a British news outlet called Sky News, a court in the British Virgin Islands ordered on June 27 that Singapore-based 3AC be liquidated.
The information in the paper alludes to an unnamed individual who is knowledgeable of the situation. A request for comment from Cointelegraph was not immediately answered by Three Arrows Capital.
Kyle Davies and Su Zhu established the Singaporean cryptocurrency hedge fund Three Arrows Capital, popularly known as 3AC, in 2012.
In the midst of a severe market collapse this year, with Bitcoin (BTC) falling below $20,000 for the first time in two years, the company apparently failed to fulfill margin calls from its lenders.
According to reports, 3AC borrowed bitcoins from the crypto lending company BlockFi, but the bear market prevented it from meeting a margin call. The predicted $400 million in liquidations for the VC firm’s various positions.
Even though the reports spread rumors that 3AC was bankrupt, the company’s founders persisted in assuring clients that they would make every effort to come up with a fair resolution.
According to Davies, the company employed legal and financial consultants to investigate options like asset sales and a rescue package from another company. We have always believed in cryptocurrencies, and we still do, he continued.
The information was released shortly after 3AC received a notice of default from the cryptocurrency exchange Voyager Digital for failing to repay a loan for 350 million USD Coin (USDC) and 15,250 BTC.