BVI court orders liquidation of Three Arrows Capital: Sky News

Quick Take

  • A court filing on June 27 shows that a BVI court has ordered the liquidation of Three Arrows Capital, per a report.

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.

For more breaking stories like this, make sure to subscribe to The Block on Telegram.


© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Tim is a News Editor at The Block who focuses on DeFi, NFTs and DAOs. Prior to joining The Block, Tim was a News Editor at Decrypt. He has earned a BA in Philosophy from the University of York and studied News Journalism at the Press Association. Follow him on Twitter @Timccopeland.