A court in the British Virgin Islands has ordered the liquidation of Three Arrows Capital, according to a report by Sky News, citing a person familiar with the situation.
A court filing was made on June 27 to liquidate the firm.
According to the report, partners from Teneo Restructuring are handling the firm's insolvency.
Started by Kyle Davis and Su Zhu, Three Arrows Capital grew to be one of the biggest crypto hedge funds. Yet it was hit hard by the sudden collapse of the Terra blockchain. Then, when the wider crypto market fell substantially, this caused further issues for the fund — and they failed to meet margin calls.
It wasn't long before crypto exchanges FTX, Deribit and BitMEX liquidated Three Arrows Capital's positions, according to previous reporting by The Block.
On June 15, Zhu tweeted, "We are in the process of communicating with relevant parties and fully committed to working this out."
We have reached out to Three Arrows for comment and will update should we hear back.
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