Three Arrows Capital liquidation ordered by court amid market crash

One of the largest victims of the most recent “crypto winter” is the large cryptocurrency hedge fund Three Arrows Capital, which has gone into liquidation.

The insider, who asked for anonymity because they were not permitted to discuss the situation publicly, claimed that Teneo was just brought on board to handle the liquidation process.

The insider stated that Teneo is still very early in the liquidation process. The restructuring company is moving to realise the assets that 3AC possesses, and in the next day or two, it will launch a website with information on how creditors can contact the firm to submit any claims.

Zhu Su and Kyle Davies co-founded 3AC, one of the most well-known crypto hedge funds that specialises in investing in digital assets like cryptocurrency, which is recognised for making incredibly successful bets. Zhu holds fervently enthusiastic opinions about bitcoin.

However, a drop in the value of digital currencies that has seen billions of dollars wiped off the market in recent weeks has damaged 3AC and made the company’s liquidity crisis public.

On Monday, 3AC fell behind on a loan from Voyager Digital consisting of $15,250 in bitcoin, or roughly $304.5 million at the time of writing, and $350 million in USDC, a stablecoin pegged to the US dollar. The algorithmic stablecoin terraUSD and its sibling token luna were exposed to 3AC.

According to people familiar with the situation, the Financial Times earlier this month claimed that American crypto lenders BlockFi and Genesis sold some of 3AC’s holdings. Despite borrowing money from BlockFi, 3AC was unable to satisfy the margin call.

A margin call occurs when a trader who borrowed money must provide additional money to prevent losses. Concerns about 3AC spreading its problems to other markets have been raised by the company’s demise.

Read more: Three Arrows Capital receives default notice from Voyager Digital