According to a recent report by Sky News, a court in the British Virgin Islands has ordered the liquidation of the cryptocurrency lending firm Three Arrows Capital (3AC). The court application for it was made on 27 June. According to the report, the insolvency of the Singapore-based company will be handled by partners of Teneo Restructuring.
Insiders on Wednesday predicted that liquidation would be a turning point in the crypto-industry’s ongoing disintegration, which has accelerated recently.
Recently, Voyager Digital also sent a default notice to Three Arrows Capital. The notice relates to a $ 650 million debt that has not been repaid.
According to the official announcement, 3AC Voyager Digital owes 15 250 BTC (Bitcoins worth $ 325 million) and 350 USDC. According to Voyager Digital, the company is still operating. The company continues to complete customer orders and withdrawals. In contrast, some other cryptocurrency exchanges had to discontinue withdrawals after exposure to 3AC.
Voyager has revealed that it has access to a $ 75 million line of credit drawn up by Alameda Research.
End of the line for the crypto lending firm?
Kyle Davies, a co-founder of Three Arrows Capital (3AC), met with the Wall Street Journal (WSJ) and discussed the company’s short-term goals in the wake of its most recent crash.
Davies said Three Arrows Capital has hired legal and financial advisers to help find a solution for its investors and lenders after suffering huge losses due to a global market sale in crypto-assets.
Davies claimed Three Arrows Capital was exploring options, including asset sales and being rescued by another company. The fund is trying to reach an agreement with its creditors to buy more time to come up with a plan. The business is still going on while searching for a solution.
However, in light of recent news, it appears that this could be the end for the Singapore-based company. We will have more updates on this development as it unfolds.