Three Arrows Capital liquidation ordered by court in British Virgin Islands: source

Quick Take

  • Advisory firm Teneo has been appointed by a British Virgin Islands court to handle the liquidation of Three Arrows Capital. 
  • The court is the Eastern Caribbean Supreme Court in the High Court of Justice in the BVI.

A court in the British Virgin Islands (BVI) has appointed financial advisory firm Teneo to handle the liquidation of troubled crypto hedge fund Three Arrows Capital (3AC), a person with direct knowledge of the matter told The Block.

New York-based Teneo has been appointed on the orders of the Eastern Caribbean Supreme Court in the BVI's High Court of Justice, said the person. The court order placed 3AC into liquidation on June 27, they said. 3AC didn't immediately respond to a request for comment from The Block. 

As a liquidation handler, Teneo’s main job is to protect the assets of 3AC and understand who its creditors are, according to the person. Teneo is essentially representing creditors. The person declined to comment on who those creditors are and how specifically the court issued an order.

Troubles for 3AC started last month after the implosion of Terra’s ecosystem and it native luna token, which sank to almost zero. The ensuing crypto market turbulence posed more issues for 3AC and — as the Block previously reported – the hedge fund failed to meet margin calls on several exchanges, including FTX, Deribit and BitMEX.

3AC and its co-founders, Zhu Su and Kyle Davies, have remained almost silent on the firm’s woes. Earlier this month, they told the Wall Street Journal in an interview that the company is considering selling off assets and seeking a possible bailout. Singapore-based law firm Solitaire LLP represents 3AC, per the WSJ report.


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3AC operated out of Singapore until last year, when it reportedly relocated to the British Virgin Islands.

The person clarified that Teneo will not manage the “insolvency” of 3AC, as reported by Sky News earlier today. Insolvency is a state in which a company exists while liquidation is what a court orders for a firm, the person explained.

Correction: Updates description of 3AC to crypto hedge fund

© 2023 The Block. 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

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.