The Three Arrows Capital cryptocurrency fund has started liquidation

The decision of the Virgin Islands court to recognize the Singapore cryptocurrency hedge fund 3AC as illiquid did not come as a surprise to participants in the digital currency market. Officially, the decision was made regarding Teneo Restructuring, that is, the "daughter" of 3AS. This will initiate the process of closing stock assets.

The company 3AC originated ten years ago. The founders of the company were Kyle Davis and Su Joo. Gradually, the company turned into the largest hedge fund in the crypto market. However, the collapse of the Terra blockchain undermined the stability of the company.

After the entire cryptocurrency market staggered, it became clear that the company would not be able to fulfill the requirements. As a result, 3AC positions were removed by major global crypto exchanges (FTX, Deribit, BitMEX).

A Hong Kong trader represented by 8BlocksCapital accused a hedge fund of embezzling $ 1 million.

This happened in mid-June 2022. Experts proceeded from suspicions that the organization used loans in order to replenish its trading accounts.

Business owners tried to save face, despite the obvious collapse of the fund to many. Kyle Davis said that the firm plans to find a solution that is beneficial for everyone. Perhaps, he said, the company's assets will be sold. Su Zhu published similar information on the microblog.

However, on June 27, Voyager Digital published a message that the 3AC cryptocurrency fund is in default. The firm was unable to make payments on loans worth more than $670 million. In particular, the hedge fund was unable to deal with loans received from Voyager Digital in the amount of 15,250 bitcoins (their value is estimated at $323 million) and another $350 million in stablecoins (USD Coin).