The crypto-funded hedge fund Three Arrows Capital (3AC), which got into trouble earlier this month, has entered a state of debt liquidation and cancellation.
According to Sky News reports, the Teneo Foundation’s partners in the British Virgin Islands have been appointed to address the fund’s remaining issues. Recall that 3AC was established in 2012. Senior figures in the crypto markets have noted that the liquidation of the company will be a very significant moment in the digital currency sectors, which have been falling since the beginning of the current year.
The immediate economic consequences for 3AC’s debtors are still unclear.
The company’s collapse is expected to raise further questions regarding regulation and supervision of crypto and other digital assets, which play a significant role in global financial centers.
The crisis in 3AC erupted earlier this month, when Canadian crypto brokerage firm Voyager Digital announced it was expected to declare 3AC insolvent because it had not repaid a loan of hundreds of millions of dollars to the Canadian company.
Meanwhile, the crypto market is experiencing significant upheavals in asset values such as stable currencies, which are supposed to be pegged to the dollar or gold value.
One of the company’s founders, Kyle Davis, said earlier this month that 3AC is considering selling assets or even a rescue through another company. It is still unclear whether the above options are being considered or whether the company has moved into full liquidation.