Three Arrows Capital (3AC), a crypto hedge fund company located in British Virgin Islands has been ordered to be liquidated after it suffered huge losses and failed to repay its debts. The liquidation order has been passed by a British Virgin Islands court after 3AC’ creditors filed suits against 3AC for its failure to repay loans.
Three Arrows Capital Ltd., a hedge fund established in 2012 was founded by Su Zhu and Kyle Davies. A few years back, the company shifted from Singapore to British Virgin Islands, a UK administered territory.
In the last few months, crypto assets including crypto currencies have seen massive meltdown and crash in market valuation. In fact, within a year i.e. from 2021 to 2022, the market cap of crypto has slipped from $3 trillion to under $1 trillion.
Crypto Market fall triggered by collapse of LunaUSD, continues and has entered into what is called crypto winter. According to Wall Street Journal report, 3AC has investments in “Luna and Grayscale Bitcoin Trust and “Lido Staked ether” tokens, a derivative of ether”.
Rising interest rates in USA and growing concerns of recession has added to panic in the crypto markets. Further blow to market sentiments came after some crypto service providing companies such Celsius (a crypto lending company) and CoinDCX (a crypto exchange company in India) stopped withdrawals facility for its customers for whatever reasons.
The news of recurrent scams and hacking in crypto market are also dampening investors confidence in the overall crypto scenario. Recently, Harmony’s Horizon Bridge reported a $100 million theft from its accounts prompting Horizon to announce $1 million bounty for return of stolen funds or information leading to return of the same.
The news of liquidation of 3AC will further have an adverse impact on market sentiments.
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