Crypto News: British Virgin Islands Court has ordered the liquidation of 3AC
iexclusivenews reports that three Arrows Capital (3AC). A troubled bitcoin venture capital business, is facing even more uncertainty following recent claims of the company’s liquidation.
This online news outlet understands that according to the British news source Sky News.
A court in the British Virgin Islands ordered the liquidation of Singapore-based 3AC on June 27.
The information in the report pertains to an unnamed person who is familiar with the situation.
iexclusivenews Nigeria reports that 3AC did not immediately react to a request for comment from Cointelegraph.
iexclusivenews gathered that Kyle Davies and Su Zhu formed Three Arrows Capital. Popularly known as 3AC, as a Singaporean crypto hedge fund in 2012.
The firm apparently failed to meet margin calls from its lenders this year. Despite a dramatic market decline that saw Bitcoin (BTC) fall below $20,000 for the first time in two years.
Due to the bear market, 3AC reportedly borrowed BTC from crypto lending service BlockFi but was unable to meet a margin call.
It was expected that the VC company will incur $400 million in liquidations across numerous positions.
While the allegations fueled speculation about 3AC’s insolvency.
The company’s owners continued to promise clients that they will do everything possible to find an equitable solution.
According to Davies, the firm employed legal and financial consultants to investigate options such as asset sales and a rescue package from another corporation.
“We’ve always believed in crypto, and we still do,” he added.
Meanwhile, iexclusivenews Nigeria reports that the announcement comes only days after the crypto exchange Voyager Digital filed a default notice to 3AC for failing to pay its 15,250 BTC and 350 million USD Coin (USDC) debt.