Crypto hedge fund Three Arrows Capital ordered into liquidation

Sky News has reported that partners at Teneo based in the British Virgin Island have been lined up to handle the insolvency of the Singapore-based firm - with cryptocurrency insiders saying on Wednesday that the liquidation would be a significant moment in the unraveling of the sector. 

The crisis at the business was highlighted when crypto broker Voyager Digital said it was considering issuing a default notice in relation to a loan worth millions of dollars. 

It also comes after one of the firm’s two founders, Kyle Davies, told the Wall Street Journal in an interview that it was “committed to working things out and finding an equitable solution for all our constituents”. 

He added Three Arrows was exploring options such as the sale of assets or rescue by another firm. 

It was, however, unclear whether such conversations were continuing or whether some form of sale of Three Arrows’ assets by its liquidators remained possible. 

According to Sky News, a person familiar with the situation confirmed a court in the British Virgin Islands had been made on 27 June to liquidate Three Arrows.