Blockchain.com, the cryptocurrency exchange and wallet provider, and the Deribit platform confirmed that they had joined the list of creditors of Three Arrows Capital (3AC) demanding the hedge fund’s liquidation. Bloomberg reports, citing statements from the companies.
On June 29, a court of the British Virgin Islands issued the corresponding decision.
«We believe that Three Arrows Capital deceived the crypto industry, and we intend to hold them to account to the fullest extent of the law. We have filed a motion for the immediate liquidation of all global assets [3AC]», — said a Blockchain.com spokesperson.
In June, against the backdrop of the crypto-market crash, rumors about the insolvency of Three Arrows Capital emerged. The trading firm 8 Blocks Capital accused the hedge fund of using client funds to cover margin calls.
According to some reports, cryptocurrency platforms BitMEX, FTX and Deribit liquidated 3AC’s positions in response to the latter’s inability to meet margin requirements.
On June 17, co-founder Kyle Davis said that Three Arrows Capital had hired legal and financial advisers to work out a plan for its investors and creditors.
On June 27, the crypto broker Voyager Digital sent 3AC a notice of default due to nonpayment of the loan.
The Singapore financial regulator announced a reprimand for Three Arrows Capital for providing false information and exceeding the permitted assets under management.
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