Three Arrows Capital Gets Liquidation Order from BVI Court
- The order has been reportedly issued on June 27.
- The fund also defaulted on a $650 million loan recently.
A court in the British Virgin Islands (BVI) has ordered the liquidation of Singapore-based Three Arrows Capital (3AC), a cryptocurrency-focused hedge fund, according to a Sky News report.
Though there is no official confirmation, the court order was issued on June 27, and partners from Teneo Restructuring were tasked with the insolvency process. However, the implications to the creditors of the company are still unclear.
Established in 2012 by Su Zhu and Kyle Davies, 3AC is one of the most prominent cryptocurrency hedge funds, and is known for its high leveraged positions.
The worries of 3AC started with the recent cryptocurrency market downturn. It incurred a loss of at least $400 million earlier this month.
Loan Default
Additionally, the fund recently defaulted on a loan of more than $670 million. According to a notice issued by Voyager Digital on Monday, the fund did not repay the loan; $350 million of which was in USD-pegged stablecoin
Stablecoin
Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including
Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including
Read this Term USDC and another 15,250 bitcoin
Bitcoin
While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that
While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that
Read this Term, which is valued at around $320 million.
ON top of that, Voyager clarified that it is intending to pursue recovery from the crypto fund.
“We are working diligently and expeditiously to strengthen our balance sheet and pursuing options, so we can continue to meet customer liquidity demands,” Voyager’s CEO, Stephen Ehrlich said.
The liquidation of 3AC might have deep implications in the cryptocurrency market where many companies are taking aggressive risks with a bullish stance on digital currency prices. The Founder of 3AC, Zhu himself is a major proponent of Bitcoin and last year predicted the price of the token could be $2.5 million per coin. However, he tweeted last May that his “supercycle price thesis was regrettably wrong.”
Meanwhile, Bitcoin is again testing the support at $20,000, as of press time, as bearish sentiment gripped the market again.
A court in the British Virgin Islands (BVI) has ordered the liquidation of Singapore-based Three Arrows Capital (3AC), a cryptocurrency-focused hedge fund, according to a Sky News report.
Though there is no official confirmation, the court order was issued on June 27, and partners from Teneo Restructuring were tasked with the insolvency process. However, the implications to the creditors of the company are still unclear.
Established in 2012 by Su Zhu and Kyle Davies, 3AC is one of the most prominent cryptocurrency hedge funds, and is known for its high leveraged positions.
The worries of 3AC started with the recent cryptocurrency market downturn. It incurred a loss of at least $400 million earlier this month.
Loan Default
Additionally, the fund recently defaulted on a loan of more than $670 million. According to a notice issued by Voyager Digital on Monday, the fund did not repay the loan; $350 million of which was in USD-pegged stablecoin
Stablecoin
Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including
Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including
Read this Term USDC and another 15,250 bitcoin
Bitcoin
While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that
While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that
Read this Term, which is valued at around $320 million.
ON top of that, Voyager clarified that it is intending to pursue recovery from the crypto fund.
“We are working diligently and expeditiously to strengthen our balance sheet and pursuing options, so we can continue to meet customer liquidity demands,” Voyager’s CEO, Stephen Ehrlich said.
The liquidation of 3AC might have deep implications in the cryptocurrency market where many companies are taking aggressive risks with a bullish stance on digital currency prices. The Founder of 3AC, Zhu himself is a major proponent of Bitcoin and last year predicted the price of the token could be $2.5 million per coin. However, he tweeted last May that his “supercycle price thesis was regrettably wrong.”
Meanwhile, Bitcoin is again testing the support at $20,000, as of press time, as bearish sentiment gripped the market again.