Court Orders Liquidation of Three Arrows Crypto Fund

Embattled crypto fund Three Arrows Capital has been ordered by a court in the British Virgin Islands to liquidate because it has failed to pay creditors, according to multiple U.S. media reports today (June 29).

The fund’s management previously acknowledged financial struggles tied to plunging bitcoin prices. The Wall Street Journal reported Three Arrows Capital had invested in the cryptocurrency Luna, which collapsed, Grayscale Bitcoin Trust and “Lido Staked ether” tokens.

“We have always been believers in crypto and we still are. We are committed to working things out and finding an equitable solution for all our constituents,” Kyle Davies, Three Arrows’s co-founder, told the Wall Street Journal in an article published June 17.

To deal with the liquidation, the court has appointed two partners at consulting firm Teneo, an unnamed person told Bloomberg. Teneo will work with potential buyers of the remaining Three Arrows assets. Also,  a website will be established so creditors can report debts owed by Three Arrows.

The Journal reported that potential creditors include Voyager Digital Ltd., a cryptocurrency broker.

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According to published reports, Three Arrows operated in Singapore before moving recently to the British Virgin Islands as part of a broader plan to ultimately settle in Dubai. Voyager Digital Ltd., a cryptocurrency broker, earlier this week issued a “notice of default” to Three Arrows for failing to repay a loan of worth approximately $675 million, Bloomberg reported on Monday (June 27).

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