British Virgin Islands court reportedly orders to liquidate 3AC

British Virgin Islands court reportedly orders to liquidate 3AC

Three Arrows Capital (3AC), a troubled cryptocurrency venture capital company, is now facing greater uncertainty due to new reports about the company’s liquidation.

According to Sky News, Wednesday’s report by British news agency Sky News that a court in the British Virgin Islands ordered the liquidation on June 27 of Singapore-based 3AC.

The report contains information about an unidentified person who is familiar with the subject. Three Arrows Capital didn’t immediately respond to Cointelegraph’s request for comment.

Three Arrows Capital (also known as 3AC) is a Singaporean cryptocurrency hedge fund that was founded in 2012 by Su Zhu and Kyle Davies. In the midst of a huge market downturn, 3AC has failed to meet its margin calls from lenders. This was after Bitcoin (BTC), fell below $20,000 for only the second time in two years. 3AC borrowed BTC from crypto lending firm BlockFi, but was unable meet a margin call because of the bear market.

It was estimated that the VC firm would have to liquidate $400 million across multiple positions.

Although rumors of 3AC’s bankruptcy were circulating, 3AC’s founders reassured customers that they would do everything possible to find a fair solution. Davies stated that the firm had hired financial and legal advisers to help them explore options such as asset sales or a rescue package from another company. He said, “We were always believers in crypto and still are.”

Related: Analyst says crypto lending can still be able to survive the bear market

This news comes just after Voyager Digital, a crypto exchange, sent a notice to 3AC stating that it was in default for failing to repay its loan of 15,250 BTC (USDC), and 350 million USD Coins (USDC).

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