Three Arrows Capital Ordered Into Liquidation by BVI Court: Report

A British Virgin Islands court reportedly ordered cryptocurrency hedge fund firm Three Arrows Capital into liquidation earlier this week


Three Arrows Capital


key takeaways

  • Three Arrows Capital must now formally liquidate assets tied to its British Virgin Islands company, according to Sky News
  • It’s not immediately clear what assets Three Arrows Capital still has or what this means for its creditors

Three Arrows Capital (3AC), the crippled cryptocurrency hedge fund firm, has been ordered into liquidation by a British Virgin Islands (BVI) court, reports Sky News citing a source familiar with the matter.

A BVI court reportedly ordered 3AC to liquidate its assets on Monday. Partners from global consulting firm Teneo Restructuring were said to be managing 3AC’s insolvency. 3AC is headquartered in Singapore but incorporated in BVI.

In these circumstances, restructuring units such as Teneo mainly focus on protecting the assets of the liquidated company, as well as determining who its creditors are.

Two Teneo operatives have been appointed to lead 3AC’s liquidation process, Blockworks has learned. Teneo will now set up a website via which creditors can make claims against 3AC, according to one source familiar with the matter.

The firm was founded in 2012 by cryptocurrency investors Su Zhu and Kyle Davies. 3AC operated crypto hedge funds as well as serving as venture capitalists across the digital asset space.

3AC has been dogged by insolvency rumors over the past few weeks, including that it suffered upwards of $400 million in liquidations as cryptocurrency markets collapsed between May and June.

Blockchain project Kyber Network, in which 3AC had invested, later detailed the firm’s treasury management services, which involved entrusting a portion of its capital with 3AC for potential profit. Those funds are still unaccounted for.

Blockworks reported similar instances affecting decentralized protocols across the cryptocurrency sector. 3AC offered its backed startups 8% annualized yield on treasury assets it managed.

Loading Tweet..

Around the same time, the chief executive of trading outfit 8 Blocks Capital alleged 3AC had misappropriated $1 million of its funds.

But the full extent of 3AC’s financial strife was confirmed last week when digital asset manager Voyager Digital revealed 3AC had failed to make payments on loans made up of $350 million in USDC and 15,250 BTC ($306 million).

Voyager Digital issued 3AC a notice of default on Monday — the same day a BVI court ordered the firm into liquidation.

Additional reporting by Sebastian Sinclair.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg


In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.


Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile


The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally


While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders


Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume


DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit


The Boston Globe reports that lawyer John Deaton is weighing a possible bid