Three Arrows Capital is liquidated

Last Updated: 29 June 2022

Three Arrows Capital (3AC) has been declared bankrupt by a court in the British Virgin Islands. This is what Sky News reports.

The large crypto-hedge fund received blow after blow after market collapse. This has now become fatal. The company is based in Singapore, and according to Sky News, bankruptcy proceedings are now beginning. Teneo Restructuring’s trustees are to oversee the process.

Three Arrows Capital was founded in 2012 by Su Zhu and Kyle Davies. So the fund has seen a lot of market developments, but they are really going down now.

Davies promised to do better earlier this month in the Wall Street Journal. He hoped that there would be a good outcome for all parties. For example, the company was looking at selling its assets to stay afloat.

It is unclear how long this process will take. However, customers who still receive money can count on the process lasting years. A practical example is the process surrounding Mt. Gox. Victims of the hack in 2014 (!) still do not have their money.

However, this is not a hack but a ‘simple’ bankruptcy. The future will tell if anyone will see any of their money back.

House of cards

Three Arrows Capital was (or is) a major lender in the world of cryptocurrency, tokens, and interest products. The questionable business models lasted a long time.

A number of other companies in the industry are also in trouble. Some of them also have (in)direct links to Three Arrows Capital. We have some recent examples of turmoil in which 3AC is (in)directly involved.

Voyager complained to 3AC about a $650 million loan. Three Arrows Capital is said to have this amount outstanding and has therefore been declared in default. It is a loan of over 15,000 BTC and 350 million dollars in stablecoins.

3AC also has a stake in the Grayscale Bitcoin Trust. Shares in this fund recently fell to a new low.

Author
  • Ivan Brightly

    Ivan Brightly is a leading cryptocurrency analyst and author with over 5 years of experience in the blockchain and digital asset space. He previously served as a senior analyst at a major cryptocurrency hedge fund where he led quantitative research and trading strategy development.

    Ivan holds a Master's degree in Finance from the London School of Economics and a Bachelor's in Computer Science from Stanford University. He is frequently invited to speak at fintech and blockchain conferences worldwide on topics spanning cryptocurrency trading, blockchain technology, and the future of digital assets.

    Ivan's commentary has been featured in several major finance and technology publications including Forbes, Bloomberg, and CoinDesk. He is considered one of the most insightful voices analyzing new developments in the cryptocurrency and blockchain industry.

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