British Virgin Islands court orders liquidation of Three Arrows Capital

The Court of the British Virgin Islands has ordered the liquidation of hedge fund Three Arrows Capital (3AC). Sky News, citing sources familiar with the matter, reports.

According to sources familiar with the matter, partners from consulting firm Teneo Restructuring were brought in to review the organization’s insolvency case. 3AC has not commented on the information.

According to открытым данным, the firm Three Arrows Capital, Ltd is registered in the British Virgin Islands. Its registered office address lists Singapore as the headquarters.

In May 2022, co-founder Su Zhu said that the fund plans to relocate its headquarters to Dubai. Among the reasons he cited was a more favourable regulatory environment.

However, in June a representative of the DFSA stated that there was no license for the hedge fund to operate in the emirate.

In June, amid a collapse in the crypto market, there were rumours of insolvency surrounding Three Arrows Capital. 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 amid the fund’s failure to meet margin requirements.

On June 17, co-founder Kyle Davies said that Three Arrows Capital hired legal and financial advisers to work out a solution for its investors and creditors.

Earlier on June 27, crypto broker Voyager Digital sent 3AC a notice of default due to nonpayment of the loan.

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